Scratch Herman Cain off the list. His 9-9-9 tax plan is just Step 1 to his step 2 plan to enact the Fair Tax – see his website explanation of his plan below.
He has no explanation of his plan outside the data listed below. However, on its face it is totally absurd. I deem it to be Fair Tax Light and anything but simple, transparent or fair.
Should Republicans be oxygen-deprived enough to buy this guy’s shtick look for the Democrats to show the public just another attempt by “greedy” Republicans to reduce taxes on the rich. Just read his plan. He proposes no tax on capital gains, no taxes on dividends, no death taxes – just an enormous sales tax to make the tax system “fairer” by taxing the 47% of the taxpayers who escape income taxes now.
Yeah that’ll fly. Right into a wall.
Cain claims 9-9-9 is a “revenue neutral” plan and the government will collect the $2.2 trillion it collected last year. Whoopee! We are spending $3.8. What the hell does he mean “revenue neutral” when that is $1.6 trillion short of expenses?
Folks we have serious problems and it will take serious people to solve them. What I have heard from Republicans is only trimming around the edges. It may be better than the Democrats who are absent from the solution debate but it is a far cry from what the people want and are starting to demand.
Should you be interested in a serious plan that simultaneously addresses our short and long-term problems see here.
I am a taxman and I can assure you the informed rich will be embarrassed by 9-9-9 and the Fair Tax plans. Even they would reject them out-of-hand.
Each of you needs to get serious or we are going into a period of stagnation just like Japan or maybe even worse.
Phase 1 - 9-9-9
- Current circumstances call for bolder action.
- The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two.
- I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.
- The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.
- Achieves the broadest possible tax base along with the lowest possible rate of 9%.
- It ends the Payroll Tax completely – a permanent holiday!
- Zero capital gains tax
- Ends the Death Tax.
- Eliminates double taxation of dividends
- Business Flat Tax – 9%
- Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.
- Empowerment Zones will offer additional deductions for payroll employed in the zone.
- Individual Flat Tax – 9%.
- Gross income less charitable deductions.
- Empowerment Zones will offer additional deductions for those living and/or working in the zone.
- National Sales Tax – 9%.
- This gets the Fair Tax off the sidelines and into the game.
Phase 2 – The Fair Tax
- Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
- The Fair Tax would ultimately replace individual and corporate income taxes.
- It would make it possible to end the IRS as we know it.
- The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.
Phase 1 Enhanced Plan – Summary
- Unites all tax payers so we all pay income taxes and no one pays payroll taxes
- Provides the least incentive to evade taxes and the fewest opportunities to do so
- Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc.
- Is fair, neutral, transparent, and efficient
- Ends nearly all deductions and special interest favors
- Ends all payroll taxes
- Ends the Death Tax
- Features zero tax on capital gains and repatriated profits
- Lowest marginal rates on production
- Allows immediate expensing of business investments
- Eliminates double taxation of dividends
- Increases capital formation. Capital per worker drives productivity and wage growth
- Capital formation will aid capital availability for small businesses
- Features a platform to launch properly structured Empowerment Zones to revitalize our inner cities
- We all know the Fed has tripled the money supply since 2008. They have been printing money out of thin air to finance the Obama spending machine. While true Fed reform that restores sound money may have to wait for my election, the best thing we can do now is to pursue policies that increase the DEMAND for dollars to help mitigate the risks associated with the increase in the supply.
- Pro-growth economic policies equal a strong dollar policy
Author: Dick McDonald of Rise Up America (http://hstrial-rmcdonald1.homestead.com/)