Ask any political PR person and they will tell you it’s great to have a catchy, roll-off-the-tongue, memorable catch phrase associated with a candidate. Unless that catch phrase is doomed to conjure up bad memories like trickle down economics or read my lips; no more taxes among many others. Herman Cain, of Godfather’s Pizza fame (he is the ex-CEO) and the Republican flavor of the month vying for their nomination to be the candidate for President, has such a catch phrase; 9-9-9. While their field is plenty crowded with Gingrich, Romney, Perry, Bachman, Paul and others too numerous or insignificant to mention, none of them have the edge on the catchy 9-9-9 phrase that has defined Cain’s campaign. But, is it wrong to throw the rich, middle class and poor into the same tax barrel? Or, is it just plain stupid?
On Cain’s own website, he says his 9-9-9 plan will “fix” the economy. It would abolish our entire tax code including any loopholes or tax credits (like the earned income tax credit for low-income earners) . His plan calls for 9 percent corporate tax, 9 percent personal income tax and 9 percent national sales tax. Cain says it would be simple and fair. I must be missing something here, I don’t see the “fair” part. There would be no tax on capital gains or dividends so once again the rich get richer. Some of the rich that pay 28-35 percent taxes on their income would pay 9 percent and the 30 million Americans that presently pay no federal income tax because they don’t make enough to do so and are at or below the poverty level will pay 9 percent under Cain’s “simple” plan. All Americans will also have to pay 9 percent on consumer goods for gas, food and medicine etc. which of course, hurts lower-income people far more than the rich.
Since Cain’s plan is for everyone including businesses, all corporations that presently take advantage of every loophole known to mankind and typically end up paying on average 26 percent in taxes, will get a nice slash to 9 percent. Do you think they will take the tax cut and turn that windfall into jobs? Or will the greedy corporations just pocket the windfall and give their CEO’s bigger bonuses? I have my own answer on that one and it doesn’t involve helping others or aiding the general economy.
I am no economist. I don’t hail from a think tank and have a hard enough time balancing a check book but I do know that a catchy slogan does not an economy fix make. This plan is yet another idea from an ex-corporate CEO that still thinks like big business. Making the rich, richer and the poor, poorer is not my idea of “fair.” As it says on Herman Cain’s front page of his website in big block letters; “Let’s Get Real”. I can’t wait until he, or any other politician actually does–but I’m not holding my breath.
2 responses to “Is 9-9-9 wrong, wrong, wrong ?”
This 999 plan will result in a great rise in prosperity over all classes, except for those who do not work. As more big business comes back to the country, more jobs will become available to lower-class and middle-class workers. Not only will American goods be on the rise, but they will be produced by citizens with the money to buy them – and re-invest in American companies. People will all be paying less in taxes, and those who have not done so in the past may also begin to pay tax.
In short, by bringing companies back to American shores there will be more jobs for people – those people will have more money by virtue of having a job, and paying less taxes on that income… all class structures will rise due to this, except for those who do not work.
And you really believe that big business is going to give up that cheap China labor? And that big business is going to come rushing back knowing every four to eight years come election time anything and everything could change? No one runs a business like that. Fees for manufacturing overseas need to be so high it’s not profitable-but that is a dream since consumers want or need dirt cheap junk.