By Richard E Walrath
Cain states his 9-9-9 plan would replace the current IRS tax system with a flat 9 percent income tax, 9 percent corporate tax and 9 percent consumption tax.
Various news reports have stated Herman Cain’s new found popularity is due to the simplicity of his 9-9-9 tax plan and my question is how many people actually know what his 9-9-9 plan is? If they did they wouldn’t like it. A 9% National Sales Tax is bad for 50% at least, of the households in this country. A 9% income tax added to the National Sales Tax = 18%. That’s higher than they’re paying now. This form of taxation is extremely harmful to the poor and middle class in this county and it’s not the end of the story. There is nothing simple, or fair, about Cain’s 9-9-9 Tax Plan.
Reminds me of a story I once heard about President Lincoln.
Lincoln was in court and asked his opponent,
“How many legs does a dog have?”
“Why, four of course”, was the answer his opponent provided.
“And how many legs does a dog have if you call his tail a leg?” Lincoln asked.
“Why, five, of course” was the answer from his opponent.
“No, the answer is still four”, said Lincoln. “Calling a tail a leg doesn’t make it a leg”.
Calling Cain’s tax plan fair and simple does not make it either fair or simple.
Herman Cain is first and foremost a former CEO and as a former CEO his first and primary concern will always be the corporate bottom line – what can be done to improve corporate profits. His interest in the poor and middle-class can be summed up in one sentence “Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself!”
© 2011 Richard E Walrath