Herman Cain on Corporate Taxes

Everybody is talking about the sky-rocketing national debt. Everyone is talking about the need to reduce spending and that is good. It should finally be obvious to the most casual observer that if we spend more than we take in that debt will continue to increase. The President will talk tonight about reforming entitlements and that ought to be interesting. But, he most likely will also promote increasing taxes on the rich as a way to reduce deficits. Republicans will rightly respond that the debt isn’t due to taxing Americans too little; the debt is due to spending too much. The President is correct, however, to the extent that increasing revenues is the other side of the coin. What liberals never have been able to learn is that increasing taxes will more than likely reduce revenue not increase it. If taxes are raised on the rich, they will do what any reasonable person would do, move more of their investments to more tax friendly places. If you could legally protect your income from taxes, you would, wouldn’t you? Of course you would. So, if raising taxes would reduce revenue, would lowering taxes increase revenue?

 History says yes. Economist Arthur Laffer also says yes. You may or may not have heard of the famous or infamous Laffer Cuurve. Please check the link for a detailed explanation. But, simply put, Laffer states at a tax rate of 0% there is zero revenue and at a tax rate of 100% there is also zero revenue. Somewhere between those two extremes is a tax rate above and below which tax revenues decrease. Logical, isn’t it? Try telling that to a liberal. But it should be clear if an individual or a corporation are taxed too much, instead of adding revenue stream, the revenue stream decreases, And that leads me to the subject of today’s post.

I and a few other conservative bloggers hae been clamoring for three years that the US corporate tax rate is too high and it is counter productive. Finally one potential Republican presidential candidate is talking about this; Herman Cain. A couple of days ago The Daily Caller carried an article by Herman Cain that you definitely should read. Here are several excerpts of what Mr. Cain has to say on the subject:

For decades, Democrats have insisted on taxing profits generated by U.S. companies in foreign countries, because they think that doing so will force businesses to keep their investments in the U.S.

Wrong! A business-friendly environment always works better than force.

Our economy gains nothing as long as those profits remain abroad. Common sense says we have everything to gain if we let those profits come home without a tax.

Some multi-national businesses might use those profits to expand operations here in the U.S., which would mean more job opportunities for the 15 million unemployed people. Or maybe companies would increase salaries and wages for their employees, or they might pay a dividend to their stockholders.

Liberals will argue that there’s no guarantee that those “evil corporations” would do any of these things if they were to get such a windfall in cash. They are right, but it’s their money and their choice. It’s not the government’s money or the government’s choice. I trust businesses and business leaders to make the right choices for their owners and customers, not the government.

We live in a global economy in an age of global information. Global businesses are constantly looking for countries that are business-friendly, tax-friendly and labor-friendly. And contrary to what liberals would have you believe, businesses do not always jump to the country with the cheapest labor. Lower taxes and growth potential are usually at the top of the priority list.

Liberals will always fight against anything that moves people’s money from government to the people who earned it. They’ll scream “crimes against humanity, old people, children and the poor” because they do not like totally un-taxing anything. They do not want taxpayers to discover that the right kind of tax cuts will actually help the economy and help put people back to work

To achieve bold economic growth, we need bold changes in our tax code. Significantly lowering the top corporate tax rate, reducing the capital gains tax rate to zero, suspending the tax on repatriated foreign profits, making the tax rates permanent, and a one-year payroll tax holiday for employees and employers would be a good start.

The next step would be to completely replace our outdated and messed-up tax code with the FairTax, which is a single-rate national sales tax. This would supercharge our economic growth, and there would be a huge sucking sound of businesses moving back to the United States of America instead of leaving.

Well, there is more and it is all good. I don’t know about you, but right now Herman Cain is at the top of my list of potential Republican candidates for President. I think he is right when he says these reductions in corporate taxes would supercharge our economy. What are your thoughts? 

30 thoughts on “Herman Cain on Corporate Taxes

  1. Sad to say, the Corporate greed of a few has tarnished the image of Capitalism. The likes of the Wall Street “fat cats” who have feed at the trough of a wonderful system of government are wrecking it for the majority of fair minded business people who make up the majority.

  2. The CEOs and directors of corporations are answerable to their stock holders. Does anyone seriously believe that they would withhold profits and steal from the very people who keep them in business?
    Answer is yes if you’re a liberal. They believe everyone who has $2 more than they do, is evil!
    At least Cain has experience in business (something Obama will never have) and he can speak from a position of authority. The only thing Obama is an authority in is organizing the caterer for his community volunteers.

      1. My thought was whether he was a stalking horse. I heard his comment on the Praeger radio
        program, and it was nonsensical.

  3. Herman Cain says all the right things. But folks outside the conservative blogosphere often omit him from the discussion of potential candidates. Will he get the wider exposure he’ll need?

    1. You make a good observation. The MSM is not going to give him much play because they see Cain as a real threat to Obama. I suspect that as the primary season gets underway, the MSM will no longer be able to ignore him. We in the blogosphere need to do our part less the MSM is allowed to pick our candidate. That is not going to happen but they will try.

  4. If Cain isn’t mentioned on a blog or a site that allows feedback, mention him- along with a link or two to any relevant videos (Google Videos “Herman Cain”) Can’t hurt…
    Run, Herman, Run!

  5. Of all the “candidates” he is so far saying the right things. His stance on the fair tax is music to my ears. If he runs, he has my vote.

    1. Cain is looking better to me all the time. We need to get more people talking about him. There are other potential candidates that i find intriging as well; Paul Ryan, Allan West, and Rand Paul.

  6. He may not be at the top of my list, but at the very least, he is adding another voice to the discussion. He certainly isn’t afraid to speak his mind and he is eloquent when he does. One thing for sure, he has some business experience and he seems to be very smart.

    1. LD,
      Curious- Who’s ahead of Cain on your list, and why? I agree there are several good ones out there, who do you have in mind? For the record, Cain’s my guy so far.

      1. My top choice right now would be Mike Huckabee, if he chooses to run. I know some people do not think he is a good choice, but he had a good record as Governor of Arkansas and he had a total mess to clean up, after several years of Bill Clinton and Jim Guy Tucker. He also had to deal with a Democratic legislature that despised him, as well as a school system that had been run into the ground. He did the state proud with the job he did for 10 1/2 years. What’s more, I think it would be fun to seem him debate President Obama. Huckabee is very smart and quick on his feet in a debate. Obama wouldn’t know what hit him.

  7. The whole taxation thing is so simple even I can understand it. How come a productive, intelligent man like Mr. Cain has to explain it repeatedly? Are we as a nation honestly that stupid?

    It’s my fervent hope that Mr. Cain and Mr. Trump are running a stealth-tag-team operation here. Let the Evil White Capitalist Icon soften Obama up, then send the Unknown Black Commonsense Conservative in for the final blow. I can hope, anyway…

  8. As of right now Herman Cain is the man at the top of my list and it will be up to the other candidates to knock him off of there. I will be taking a close look at this man because there is no “frontrunner” that I feel deserves my vote.

    1. As Thomas Sowell wrote a few months back, applying our wage standards to those countries is ridiculous, The people working for $2 a day have improved their living standard compared to before they had that job.

  9. rjjrdq,
    Sorry, but I found your post made about as much sense to me as your handle. Would you mind explaining? My position is that the only reason USA isn’t competitive is our tax structure, and the Fed’s rape of our money. Oh yeah, let’s not forget our hugely overgrown government. For a reference point, I refer you to someone with a pretty good perspective on what America’s supposed to be about:
    “The government that would take 10% would be EXCEEDINGLY oppressive.” (emphasis mine)

    Very little of what our government does comes even close to passing muster under our US Constitution. We are way past time to re-institute Constitutionally correct reality. I would be pleased if you could join the effort to accomplish this. For the time being, our own wellbeing requires that we allow the rest of the world to take care of themselves, just like us. Call me selfish, but my children and grandchildren come first…

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