Herman Cain Should Drop One Nine!

Herman Cain’s 999 plan has one two many nines. In other words his plan is two parts excellent and one part problematic. Mr. Cain’s plan is excellent because it eliminates the current tax code and that means an end to subsidies, tax breaks, and “corporate welfare.” It is excellent because it introduces an individual flat tax that gives everyone skin in the game. Right now almost fifty percent of the voters pay zero federal income tax. This means fifty percent of the population can vote to increase the taxes on the other fifty percent at no personal cost; a recipe for disaster!

Mr. Cain’s plan reduces the payroll tax. This is excellent because Social Security and Medicare are socialist budget-busting boondoggles that should be phased out and privatized as quickly as possible.

Mr. Cain’s plan is excellent because it gets rid of capital gains tax. Capital gains taxes are a form of double taxation that destroy investment incentives and stifle economic growth.

Mr. Cain’s plan is excellent because it lowers corporate income tax to a level that would be among the lowest on the planet. Right now the United States has the highest corporate income tax in the world. High corporate income taxes drive businesses and jobs overseas. High corporate income taxes destroy incentive. High corporate income taxes are a kind of stealth tax on consumers because corporations are forced to raise prices to recoup some of their loses.

Mr. Cain’s 999 plan is problematic because it introduces a national sales tax. While in the short term this nine percent “value added tax (VAT)” seems benign, it opens a Pandora’s Box of long term double-trouble. Future Presidents and future congresses will be free to add on to this national sales tax until it becomes an economy killer similar to that which exists in the UK and other European Socialist Democracies today. The VAT must not be allowed!

So I respectfully submit the following suggestion to presidential candidate Herman Cain. Drop one nine! How about a 99 plan! Nine percent personal flat tax. Nine percent corporate flat tax. Zero deductions and zero subsidies. The economic growth created by this new 99 tax code will more than make up for the problematic nine percent national sales tax.

By Mark Van Schuyver