Wall Street Journal, Georgia native Herman Cain unveiled the specifics of his economic plan for the first time today. Cain’s plan, called the “9-9-9 plan,” appeared on the editorial page of the September 15 Journal.
The core of Cain’s plan is a tax reform proposal that would replace current personal and corporate taxes with flat taxes at a 9 percent rate. Businesses would deduct business-to-business purchases and capital investment and then pay a nine percent flat tax on the remainder of their income. Individuals would deduct charitable deductions and pay a 9 percent tax on their remaining income. Capital gains would be excluded from taxation.
The third “9” would be a 9 percent national sales tax. This federal sales tax would be levied only on the sale of new goods. In a nod to the Fair Tax, Cain’s plan excludes used items from taxation. Cain would also eliminate the taxes on profits from international operations that are returned to the U.S., the payroll tax and the estate tax.
Cain believes that his tax reform plan would make U.S. businesses more competitive and help the economy begin to grow again. According to Cain, the tax reforms would be revenue neutral when they are implemented, but revenues would increase as the economy grows.
Cain also notes that he would repeal three laws that have caused severe damage to the economy. He calls the repeal of Obamacare, the Dodd-Frank financial reform, and Sarbanes-Oxley “critical steps” toward an economic recovery.
Cain’s plan also calls for taking steps to stabilize the dollar’s value, reducing spending and paying down the federal debt. He also favors free enterprise (empowerment) zones as a way to encourage investment in urban areas. In another recent WSJ editorial, economist Arthur Laffer describes free enterprise zones as areas where the government would suspend minimum wage laws, suspend or lower tax rates, and offer expedited approval of burdensome regulations.
Herman Cain is one of two Georgians competing for the Republican presidential nomination for 2012. He is a former business executive and radio talk show host on Atlanta’s WSB AM-750. A Tea Party favorite, Cain polled well initially, but has slipped over recent months. In the most recent Real Clear Politics average of polls, Cain claimed less than 5 percent of the vote. He trailed Perry, Romney, Palin, Paul, Bachmann and was in a statistical tie with the other Georgia candidate, Newt Gingrich.
Read the rest of this article on Examiner.com: