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Cain: ‘I Have No Idea’ How My 999 Plan Would Work

ProudProgressive 2011/10/13 13:48:07
The latest flavor of the week in the Republican competition to see who can hand the most money to the richest 1% while continuing to screw working Americans is Herman Cain's nonsensical "999" plan. His plan, which would cut taxes for the highest income earners, cut taxes for wealthy corporations, and raise taxes when someone on minimum wage wants to buy food to feed their families, has been rejected by most economists, including some of Cain's own advisers, as unfair and unworkable. But now, it seems, that even Herman Cain doesn't have a clue as to what he is talking about. Join the club, Herman. No one else can figure it out either.

Article excerpt follows:


Cain: ‘I Have No Idea’ How My 999 Plan Would Work


By Pat Garofalo


Oct 13, 2011



Former Godfather’s Pizza CEO Herman Cain’s 999 plan — which would scrap the current tax code in favor of a nine percent personal income tax, nine percent corporate income tax, and nine percent sales tax (on everything, including food) — was the undeniable star of the GOP’s primary debate this week, with the number nine warranting 85 mentions during the course of the evening. As we’ve been reporting, the plan would entail a huge tax increase on the poor while slashing taxes on the rich.



Cain, when faced with analyses showing how much his plan would wallop the low-income Americans, dismisses them, calling them “erroneous.” But as it turns out, Cain isn’t particularly well-versed in the nuances of his plan. Asked how his proposed corporate income tax would apply to products built in other countries and designed and sold in the U.S., Cain replied “I have no idea“:



Mr. Cain made it clear Wednesday his plan remained a work in progress. Visiting Concord, N.H., he added several new wrinkles. He would preserve the deduction for charitable donations, making the flat income tax not so flat; he would exempt any used goods, including previously owned homes and cars, from the national sales tax; and he would allow businesses to deduct new equipment purchases from their 9% corporate income tax, as long as the goods were U.S.-made.



Asked how that would apply to a computer designed domestically but containing Malaysian components and assembled in China, he replied, “I have no idea.”



Even the Cain campaign’s own economist said the 999 plan “wouldn’t be the one I picked” to run with. Remember, the plan was crafted by a Koch-affiliated financial adviser from a Wells Fargo branch in Ohio, not an actual economist.



As ABC reported today, a long list of economists “say Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.” Conservative economist Bruce Bartlett wrote that, “at a minimum, the Cain plan is a distributional monstrosity.” Cain would surely dispute these assertions, but how seriously can his protests be taken if he freely admits he has “no idea” how the plan would even function?

Read More: http://thinkprogress.org/economy/2011/10/13/342703...

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  • chgo 2011/10/13 15:18:05
    chgo
    +5
    video platformvideo managementvideo solutionsvideo player

    Cain developed the plan with the help of a little known accountant from Cleveland named Rich Lowrie. Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.

    If you have a family of four with an income of just under $50,000, they would pay more under the Cain plan. Currently, they are taxed at just less than 7 percent and pay $3,400 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.

    That’s $1,100 more.

    Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit of $4,000. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000.

    That means under the Cain plan that family would be almost doubling its taxes, going from $3,400 to $6,500.

    “It’s going to raise the price of just about everything by about 9 percent,” said former George W. Bush economic policy adviser Bruce Bartlett. “We know from experience and analysis that that tends to hurt people with low incomes.”
    video platformvideo managementvideo solutionsvideo player

    Cain developed the plan with the help of a little known accountant from Cleveland named Rich Lowrie. Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.

    If you have a family of four with an income of just under $50,000, they would pay more under the Cain plan. Currently, they are taxed at just less than 7 percent and pay $3,400 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.

    That’s $1,100 more.

    Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit of $4,000. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000.

    That means under the Cain plan that family would be almost doubling its taxes, going from $3,400 to $6,500.

    “It’s going to raise the price of just about everything by about 9 percent,” said former George W. Bush economic policy adviser Bruce Bartlett. “We know from experience and analysis that that tends to hurt people with low incomes.”
    (more)

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Opinions

  • twocrows 2011/10/13 21:48:26
    twocrows
    +3
    and embedded inside 999 is his plan to eliminate Social Security and Medicare. He specifically states, "let the states and the churches and the charities provide for those in need."

    how did that work out for us prior to 1935? and those were the days when grandparents habitually lived with their children and grandchildren. are we ready to return to that? it's in Cain's plan. look it up:
    http://www.hermancain.com/the...
    click on entitlements.
  • BobJessen 2011/10/13 21:35:27
    BobJessen
    +2
    Cain...Wadda Pain! jim
  • Liza Jane 2011/10/13 19:15:58
  • twocrows Liza Jane 2011/10/13 21:51:43
    twocrows
    +5
    it's a giveaway to big business. where is Cain from again? oh, that's right . . . .
    read his entire platform. big business is kissing him on both cheeks:
    http://www.hermancain.com/the...
  • JaguarSocialist 2011/10/13 16:09:55
    JaguarSocialist
    +3
    To be more specific, Cain doesn't have any idea.
  • baller 2011/10/13 16:00:56
    baller
    He is as smart as the current one
  • JaguarS... baller 2011/10/13 16:10:27
    JaguarSocialist
    +3
    Being an attorney requires more knowledge than slicing pizza.
  • Account... JaguarS... 2011/10/14 00:27:36
    Account Closed
    Precisely why this country is screwed up, Lawyers.

    Did Shakespeare have it right?
  • JaguarS... Account... 2011/10/14 16:08:33
    JaguarSocialist
    +1
    This country is screwed up due to the failed policies of conservatives who care more about coddling the rich than they do about creating jobs.

    Furthermore, your comment doesn't address the point I made.
  • Account... JaguarS... 2011/10/14 18:12:24
    Account Closed
    Seems like you people on the left are just as screwed up as those on the right, believe me neither side holds a majority of the blame, they are both equal.
  • JaguarS... Account... 2011/10/14 20:47:18
    JaguarSocialist
    Yeah, if you call trying to curtail the power corporations have over our political process "screwed up," if you call helping the most needy in our society "screwed up," if you call supporting investment in infrastructure "screwed up" then that's a badge we wear with honor.

    Perhaps, instead of catering to the whims of the rich and corporations who have benefited the most from the U.S. government, maybe it's time we actually did something to help the middle class.

    A majority of Americans favor taxing the rich at higher rates; let's do it and, from a purely historical standpoint, higher tax rates have resulted in greater economic growth.
  • baller JaguarS... 2011/10/14 19:01:55
    baller
    got that right !
  • DJ 2011/10/13 15:54:47
    DJ
    +3
    I'm not a fan of 9-9-9, but it's unfair to expect Cain to be able to address every possible tax scenario, when no one is capable of doing so for the current tax code. Every one of us, including those with some tax expertise, would have to say "I have no idea" how the current code works in many areas.
  • twocrows DJ 2011/10/13 21:52:22
    twocrows
    +1
    read his entire platform. it will curl your hair.
    http://www.hermancain.com/the...
  • Account... twocrows 2011/10/14 00:24:37
    Account Closed
    What do you mean, curl your hair? Are you insinuating something about the texture of Mr Cains hair?
  • Guru_T_... twocrows 2011/10/14 16:25:55
    Guru_T_Firefly
    It certainly looks like there are very few edible toppings and a lot of extra cheese in his platform.
  • Account Closed 2011/10/13 15:51:16
    Account Closed
    This is a racist blog the only reason you hate this man is because he is black and a conservative but you hate him more because he is black and not a Democrat!!!

    race card
  • twocrows Account... 2011/10/13 21:53:19
    twocrows
    +4
    YOU'RE the only one playing the race card here. everyone else is focusing on his message.

    what does that say about YOU?
  • Account... twocrows 2011/10/14 00:23:49
    Account Closed
    Doesn't say nothing about me, in fact you failed to catch the irony, when Republicans voted against Obama the left jumped up and down screaming racism, now we have a gentleman on the other side (who happens to be black) and Democrats are screaming about him, I wonder is it racism? I guess both sides can play this game.
  • JaguarS... Account... 2011/10/14 20:50:11 (edited)
    JaguarSocialist
    [...]you used the race card and Cain's tax plan would increase taxes for the middle class. No doubt the rich fare well.
  • twocrows Account... 2011/10/14 22:14:07
    twocrows
    a double negative. how quaint.

    and no, no one that I know of declared 'racism' when people didn't vote for him.
    when the birthers got started, however . . . . .
    let me explain this to you. disagreeing with a person's policies is not about race. telling lies about his birthplace is.
    see the difference?
  • Guru_T_... Account... 2011/10/14 16:33:36
  • Account... Guru_T_... 2011/10/14 18:13:28
    Account Closed
    ???
  • Guru_T_... Account... 2011/10/15 16:20:19
    Guru_T_Firefly
    Exactly!
  • Jimbo 2011/10/13 15:44:28
    Jimbo
    +4
    When you don't fund social security, medicare, federal unemployment, disability, those programs will cease to exist. Kudos to chgonugget on his post about income loss for those under $50,000. There is no lack of investment capital in our economy, there is a severe lack of demand which is harmed further by 9/9/9.
  • chgo 2011/10/13 15:18:05
    chgo
    +5
    video platformvideo managementvideo solutionsvideo player

    Cain developed the plan with the help of a little known accountant from Cleveland named Rich Lowrie. Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.

    If you have a family of four with an income of just under $50,000, they would pay more under the Cain plan. Currently, they are taxed at just less than 7 percent and pay $3,400 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.

    That’s $1,100 more.

    Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit of $4,000. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000.

    That means under the Cain plan that family would be almost doubling its taxes, going from $3,400 to $6,500.

    “It’s going to raise the price of just about everything by about 9 percent,” said former George W. Bush economic policy adviser Bruce Bartlett. “We know from experience and analysis that that tends to hurt people with low incomes.”
    video platformvideo managementvideo solutionsvideo player

    Cain developed the plan with the help of a little known accountant from Cleveland named Rich Lowrie. Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.

    If you have a family of four with an income of just under $50,000, they would pay more under the Cain plan. Currently, they are taxed at just less than 7 percent and pay $3,400 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.

    That’s $1,100 more.

    Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit of $4,000. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000.

    That means under the Cain plan that family would be almost doubling its taxes, going from $3,400 to $6,500.

    “It’s going to raise the price of just about everything by about 9 percent,” said former George W. Bush economic policy adviser Bruce Bartlett. “We know from experience and analysis that that tends to hurt people with low incomes.”
    (more)
  • Swany 2011/10/13 15:12:47
    Swany
    +1
    Tax increases on the poor will not help anymore than a tax increase on the rich. more taxes
  • JaguarS... Swany 2011/10/14 20:51:39
    JaguarSocialist
    Historically, higher tax rates on the rich have resulted in strong economic growth.
  • Bronar 2011/10/13 15:06:55
    Bronar
    Can't possibly be worse than what we are doing now. The more I hear him speak the more I like him.
  • chgo Bronar 2011/10/13 15:18:47
    chgo
    +4
    It's even worse.
  • Bronar chgo 2011/10/13 15:21:22
    Bronar
    Our house in in shambles, we need real change. I feel Cain and or Ron Paul are the only candidates willing to break our debt cycle and get America back on track.
  • chgo Bronar 2011/10/13 15:27:05
    chgo
    +2
    Taxing poor and the middle-class to extinction is the solution. Nearly haldf of Americans make less than 30K a year after taxes. Taxing them more isn't smart.

    Cain's plan would impose a tax hike for the lower middle class and a tax windfall for the wealthy.

    If you have a family of four with an income of just under $50,000, they would pay more under the Cain plan. Currently, they are taxed at just less than 7 percent and pay $3,400 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.

    Fortunately, no one takes this idiot seriously nor his idiotic tax plan.
  • Bronar chgo 2011/10/13 15:30:42
    Bronar
    No one takes Paul or Cain seriously? Look at their poll numbers! The press, who know they will be left out in the cold if ever a 3rd party gets elected, are the scared ones who don't take them seriously. Move along little sheep, keep voting your party line because they are so different from each other and so likely to improve the downward spirol we are in.
  • chgo Bronar 2011/10/13 15:34:33
    chgo
    +1
    You are delusional as hell. Poll numbers, poll schmonumbers. Cain doesn't have a chance because, for one, he's black, duh!
  • Bronar chgo 2011/10/13 15:37:42
    Bronar
    So you think it's best for racism and the press to pick our leaders? I prefer to listen to what the candidates say and make my own decisions. Cheers.
  • chgo Bronar 2011/10/14 02:16:45 (edited)
    chgo
    +1
    How am I the racist when I call them racists, con? I'm not the one who's the racist here. it's your teabagger friends and GOP congressmen who scream and swear at others, who were the ones doing dumbasz shi* like mailing teabags to Congressmen' offices, who were the ones raiding town halls and or government buildings, who were the ones actually standing in front of their office windows egging on these teabagger protesters in DC to benuisances to democrats Congressmen walking past them to get inside, who were the ones responsible for the S&P; credit downgrade, who were the ones calling members of congress n*****r and f**got,who were the ones actually SPITTING on Congressmen, who were the ones holding up misspelled signs, who were the ones holding up offensive, racist signs, etc.
  • Bronar chgo 2011/10/14 13:43:52
    Bronar
    You're quite the 3rd grade level debater. No wonder you vote Democrat,
  • chgo Bronar 2011/10/13 15:29:41 (edited)
    chgo
    +1
    And nobody care for Ron Paul either except for ignoramuses like you. Paul wants to deregulate Wall Street and end all social programs. Neither one will win the primaries. They'd have to run third party/
  • Bronar chgo 2011/10/13 15:32:39
    Bronar
    Baaa..now do you understand me? More of the same, what a great idea.
  • Jimbo Bronar 2011/10/13 15:48:34
    Jimbo
    Real change without increasing debt is a 5% tax on everything, all income and products redistributed directly with full shares to workers, 1/3 for unemployed, dependents and seniors, put on a bank credit card that can only buy American made, pay medical and education costs. Seniors get charged 10% of medicare costs to the 1/3 share cap. Debt goes down, demand goes up and the 2 trillion sitting on balance sheets gets invested here rebuilding the manufacturing base.

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