Thursday, October 13, 2011

Nine Thoughts on 9-9-9

Herman Cain is getting a lot of traction on his 9-9-9 Plan as he should.  He is the only candidate that is actively tackling the invasive, abusive, corrupt and ineffective tax system that has metastasized upon the American people and her industry.  A 9% flat corporate tax, 9% income tax and 9% sales tax IS a bold are 9 thoughts to consider...good and bad:

1. YAY! No one knows - except those who profit in this system what is in the Federal Tax Code - there are over 75,000 pages of scribble in the code and even way back in 2005, it was estimated that 6 BILLION hours are spent by individuals, corporations and non-profits to make sure they comply.  This thing is SIMPLE.

2. BOO! States, such as Tennessee that have no personal state income tax would suffer, or would be forced to implement an income tax.  9% on top of the 9.5% we already pay in Nashville would be devastating.

3. YAY! Reducing corporate tax rates while eliminating the capital gains tax is a huge win for American competitiveness.

4. BOO! Introducing a national sales tax as a new piggy bank for Washington is pretty scary.  It may start out at 9%, but without some serious checks, it WILL go up.  Any time those junkies in DC need a revenue hit, they'll bump the sales tax.

5. YAY! This plan eliminates the death tax - no more double taxation!

6. BOO! The 9% sales tax and the 9% business tax are arguable the same thing and could result in a run-up in costs of goods sold.  Couple that with the exclusion of the 9% sales tax on raw goods for those that are U.S. in origen, and you are potentially threatening trade retaliation.

7. YAY! The plan is simple, streamlined and easy to understand.  It should dramatically reduce the cost of governance, enforcement and compliance...just feel the productivity surge!

8. BOO! The economic centerpiece of the Cain campaign focuses on the revenue side of the equation.  He has got to start talking about the spending and where he will cut.

9. YAY! A serious candidate has put forth a daring new plan for how we can improve our economy.  I don't like this plan as much as a flat or a fair tax, but I like the fact that someone is willing to take the heat and ignite the debate on this issue.  I also like the fact that it gets every American to put skin in the game.  For the 47% that pay no Federal taxes, that's a bummer...but then maybe you will be more conscious of the spending and become a conservative!

Rumble on!

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