Cain's 9-9-9 Plan - What Does It Really Do?

During yesterday’s economic debate, most of the Republican presidential candidates gave the same lines when it came to fixing the economy: deregulate everything, end Fannie Mae and Freddie Mac, cut taxes for the wealthy, and repeal “Obamacare.” Not a single candidate really delved into how any of these moves actually creates jobs for Americans or helps with falling housing prices or lack of consumer buying power, but details don’t seem to be a strong suit when it comes to jobs plans, other than “give the wealthy more money and they will be willing to ‘risk it.’”

Businessman Herman Cain, on the other hand, actually presented a fairly solid plan, at least, when it came to exact details. Repeating “999″ all night, Cain made sure that every member of the audience understood that under him as president, all people would pay 9 percent of their income in federal taxes, regardless of how much money they earned, would pay a 9 percent sales tax on all purchased goods, including food, clothing and medicine, and all corporations would pay a flat 9 percent of their earnings in taxes, too. Inheritance, investment income, and capital gains would all be excluded from any taxation.

If nothing else, the plan is simple. It’s also grossly unfair, as it raises taxes on lower income workers, forcing them to pay federal taxes they currently earn too little to actually pay, and greatly increases the sales tax on absolutely everything they will purchase. And Cain is well aware of the fact, saying that the reason the plan would “work” is because he is broadening the “base” of people paying in.

In other words, it would work because the lost tax revenues that the rich would be saved from paying would instead be paid for by lower income, elderly and disabled, traditionally exempt from such onerous tax burdens.

But what else can you expect from a plan created not by an actual economist, but by a “wealth manager” at Wells Fargo, who’s job is to get rich people to increase their own net worth as much as possible and who’s clients would most benefit from Cain’s new tax code? Would that translate into more spending, and hence job creation? Real economists say “no.” “[R]ich people can already spend as much as they want and are unlikely to spend more even if their taxes are abolished,” says Republican economic adviser Bruce Barlett, who calls the 999 plan a “distributional monstrosity.”

Still, it is simple, and for soundbite friendly audiences with short attention spans, simple is good. Should it ever get real scrutiny on the trail, it’s much more likely to fall apart. Then again, if it ever gets real scrutiny on the trail, odds are that means Cain may be within striking distance of the GOP nomination.

Cain: Tax Food Not Capital Gains

Cain: If You Aren’t Rich, You Have Yourself To Blame

Read more: 999, herman cain

Photo from IowaPolitics.com via flickr creative commons

Disclaimer: The views expressed above are solely those of the author and may not reflect those of
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Shane C.

11:59PM PDT on Oct 17, 2011

The only people who could afford this are probably the 1%.

send a green star

Dylan T.

4:24PM PDT on Oct 17, 2011

999
a simple solution for simple minded people
a CONservative republiCON bait and switch

Ron G.

6:48PM PDT on Oct 16, 2011

Yep...it's 666 alright...just that Cain was standing on his head when he proposed it.Ironic though that Cain killed Abel.Even back then it was still 666.If Cain does bring this about ,we won't be able to afford anything.However,the implications are very serious and it is the devils number after all.It is the number which will soon be driving the economy of a one world govt. Comments here indicate that people are aware that a massive change is not far away.We are in the age of electronics and the micro chip which makes it easier to bring it about.At birth people will merely become numbers ( actually we are that stage now) which will stay with them for life in the form of micro-chip on the forehead or back of the hand.People alive now would easily be implanted with it.Money now is largely already just a number on a computer and not physical.That number makes it much easier to bring about such change as it will apply to everything and you won't even have to produce any evidence of your self other than the implanted microchip.To change to such a system is merely to plant the given number into the system.Science fiction ? Nope. there is already evidence of it.Once such a system such as Cains is thrown into the ring and people become aware of it,and used to it,it is only a matter of time.666 is a number which has many conotations

Linda H.

7:40PM PDT on Oct 15, 2011

I agree it's 666.

Craig Z.

7:55AM PDT on Oct 15, 2011

More Flim-Flam from the party of financial scams.

myra d.

4:16AM PDT on Oct 15, 2011

They can't get it together to fix the infrastructure. How do they think they're going to be able to pass all the laws, and re vamp all the codes etc.etc.etc. to begin to implement this 999 silliness.

Robert H.

9:31AM PDT on Oct 14, 2011

Our country can't afford 999 and neither can I.

Leslie P.

5:24AM PDT on Oct 14, 2011

Cain's plan is 9% tax on everything. Where do state and local taxes fall? In California we already pay almost 10% sales tax. Does that mean that we would pay a 9% federal tax as well as a 10% state sales tax? That would be almost 20% tax rate. How are the poor and middle class supposed to afford this? Why has this question not been raised?

Penny M.

11:59PM PDT on Oct 13, 2011

I can't afford Herman Cain.

Marie W.

10:12PM PDT on Oct 13, 2011

999 is more like 666 the mark of Satan.