Cain's 9-9-9 Plan is Bold, Fair and Smart
Nation 11:22 AM
 |
| Photo credit: CBS News. |
As Herman Cain has risen to first place in the polls, he has come under intense scrutiny for his grasp of policy and especially the famous 9-9-9 tax overhaul. But for as excited as conservatives are about a fair or flat tax, why the rush to condemn 9-9-9?
What the plan does: Scrap current tax code, broaden the tax base and eliminate loopholes. For everyone who has cursed the complex tax code, loopholes for special constituencies, or people failing to pay their "fair share" this is the plan for you. Freedomworks's Dean Clancy analyzed the plan, noting "[B]y proposing it, Cain is showing some political courage and imagination." Legendary supply-side Economist Arthur Laffer praised the pro-growth plan as "wonderful."
What it does not do: Pile on new taxes or burden the poor. Some allege the 9-9-9 plan is regressive. Hogwash! For starters, the plan is exempt on used items, which disproportionately benefits lower and middle class wage earners. It also eliminates FICA payroll taxes the poor currently pay, even those exempt from ordinary income taxes.
How do we know 9-9-9 won't become 15-15-15? The beauty of the plan is its transparency. Because it will be impossible to hide new taxes in bills like Obamacare does, it will also be much harder for lawmakers to target certain groups for tax hikes. If Congress decides to raise tax rates, they will have to answer directly for it.
Will the plan spur economic growth? Undoubtedly. By eliminating investment taxes and dramatically lowering corporate taxes, the plan immediately makes it more appealing to do business and invest in business right here in the USA rather than hiding assets and money overseas. The plan also encourages thrift and savings, which would strengthen our core economy.
Should we really slash corporate taxes? Research Fellow Alex Brill from AEI noted on C-Span Washington Journal this Sunday that corporate taxes are passed on, not only through higher product prices, but often also through lower wages to employees. They are a disastrous policy black hole. Eliminating or slashing them would benefit ordinary people while establishing America as the best place to do business.
The 9-9-9 tax plan is genius both in its transparency and its simplicity. It directly tackles the pitfalls of our current tax code while getting the government out of the business of picking winners and losers. Is it perfect? What tax code ever is? But it is a bold, fresh plan for economic growth and a level playing field.
Herman Cain deserves great credit for his tax plan and his inspiring insurgent campaign. Bravo!
(Updated to clarify language. A previous edition of this article inadvertently implied that the 9-9-9 plan would eliminate corporate taxes.)
Posted by Nick Stone
on 11:22 AM.
Filed under
Posts
