Finally _ A Politician with a Plan _ Herman Cain’s 9-9-9

Finally a politician, Herman Cain, is looking beyond just the problems of our debt and deficits and is proposing something that has the potential to get our pathetic economy going again.

Cain was in New Hampshire, having just opened his headquarters there, and he announced his proposal for a 9% corporate tax rate,a 9% personal tax rate, and a 9% sales tax. (Source)

You can  also see here a Fox News Video of Cain talking about his plan.

Those of you that have followed this blog for any time know how important I feel it is that our leaders understand that cutting spending and balancing the budget without coupling these actions with a plan to get the economy going and creating jobs is a recipe for disaster.

Economists see no 2nd recession, no real recovery. That is the title of a story from MSNBC.com.  I don’t find this projection by economist very heartening. Especially knowing how often the same economist will report later that the results were “unexpectedly” worse than had been anticipated. There seems to be nothing but bad news when it comes to the economy. Unemployment remains frighteningly high. The housing industry keeps getting worse. Food costs keep raising. Markets are very nervous about Europe’s debt situation as well as the tensions in the Middle East. But, possibly the worst news we had recently is the downward revision our America’s GDP in the first two quarters and the forecast for the remainder of the year.

First quarter GDP was a miserable 0.4% and the second quarter GDP was only 1.3% and economist forecasting the second half of the year to be only 2%. Folks, that should be cause for alarm and I don’t understand why this news is not getting more attention. The reason I say that is that if the actual GDP is less than what was used during the recent debt ceiling debates, the revenues that were assumed will not be met. Therefore, it is highly likely that the amount that the debt ceiling was raised will NOT carry us through the next elections and that will be very bad news for Mr. Obama’s chances in 2012.

So, where am I going with this line of thought? What I’m thinking is that the leadership of the Republican Party needs to be operating on the assumption that they are going to win the Presidency, they are going to pick-up more seats in the House and, they have a good shot at gaining control of the Senate. On that premise, they need to be formulating a solid plan for leading this nation away from the brink of disaster. Come January 2013, they need to hit the ground running.

And here is the point that I can’t emphasise enough. The very first move this new conservative government makes  MUST HAVE POSITIVE RESULTS! If the first move is massive spending cuts and throwing bureaucrats on the street, the American people will only feel pain and there will a horrible backlash, in my opinion. And, this is where Herman Cain’s 9-9-9 plan or something similar comes into play.

Cain’s plan may not be perfect; but, it is a good place to start formulating an overall plan to get the economy moving again. Imagine, if a 9-9-9 type of tax reform were coupled with unleashing the shovel ready jobs and pent-up investment from the oil, gas and, coal industries, people would finally see some reason for hope in the future and I think the markets would respond positively. That, in my opinion, would be a great first move for our new conservative government. I believe something like what I have suggested would go a long ways toward easing the pain that the required spending cuts will cause.

Well, that’s what I’m thinking. What are your thoughts?

Advertisements

36 thoughts on “Finally _ A Politician with a Plan _ Herman Cain’s 9-9-9

  1. The very first move this new conservative government makes MUST HAVE POSITIVE RESULTS! If the first move is massive spending cuts and throwing bureaucrats on the street, the American people will only feel pain and there will a horrible backlash, in my opinion.

    Yes! The Democrats will be crouching in the shadows, waiting for the first sign of trouble or pain to launch their demagogic attacks. Getting into this mess was easy, getting out will be painful and extremely difficult, with plenty of opportunities for liberals to scream “See, I told you so!”

    It’s human nature. Go read Exodus and see how fast Hero Moses became the goat and people who had been singing hosannas to God for delivering them out of slavery turned to bellyaching.

    That’s not just a story about the Jewish people. It is the story of mankind.

    1. Yes sir! The liberals will never accept blame for putting the country in such a position that the only way out is through pain. The pain will be the fault of those correcting years of mistakes. This is why our first move must have positive results.

  2. And here is the point that I can’t emphasise enough. The very first move this new conservative government makes MUST HAVE POSITIVE RESULTS! If the first move is massive spending cuts and throwing bureaucrats on the street, the American people will only feel pain and there will a horrible backlash, in my opinion.

    Truer words are rarely posted–this has been my feeling for a while.

    Now, I’m thinking America’s not falling for that pink-unicorn thing again. We know we’re in deep tapioca and things aren’t going to get better overnight. But we’re also short on patience; time is running out. A bit of pain at first might be acceptable, if it’s explained clearly why the pain is necessary. But if we don’t start seeing a serious, concrete benefit to us, directly, by the end of the first year, I fear the backlash you predict will become reality.

    On another note, this

    What I’m thinking is that the leadership of the Republican Party needs to be operating on the assumption that they are going to win the Presidency, they are going to pick-up more seats in the House and, they have a good shot at gaining control of the Senate. On that premise, they need to be formulating a solid plan for leading this nation away from the brink of disaster. Come January 2013, they need to hit the ground running.

    leads me to ask, “WTF are you smoking, and will you please send a couple of pounds of it over to my house at once?” What in recent history leads you to believe that the GOP is capable of seeing themselves as victorious, wanting to achieve victory, or knowing what the hell to do with it even if it happened? True, we’ve gotten a few of our firebrands into the mix, but the leadership of the GOP are a bunch of Cocktail Party cowards who couldn’t organize a kegger at a frat house.

    The ‘leadership’ of the GOP is absolutely, completely and totally irrelevant to our goals. Regardless of what they assume, they do not run our party–WE DO. The sooner all Conservatives understand this, the sooner we can begin ignoring these bucketheads and achieving some REAL results.

  3. Great points made again Jim. The GOP must be careful about Unemployment Insurance, Food Stamps,and the like. These are small cost items compared to the goals that are most important. If the GOP is seen as without compassion, it will be a loser. It is hard to put a face on the issues we are attempting to address, but the view of hungry jobless folks will be out there in full force IMO.

  4. I absolutely agree with your premise, Jim. The good thing is, it won’t be that hard to do things that help right away. It’s almost getting to the point where it’s an “everybody knows, except Obama” thing. The list is simple: Expand energy production and exploration (down go gas prices immediately because of anticipated expansion of supply, up goes jobs). Repeal Obamacare (do I really have to go into the reasons why this is absolutely necessary?). Go on an immediate slash and burn run through Obama’s regulatory regime, then take a more methodical run through the whole thing to get rid of unnecessary and redundant regulations, as well as utilizing the “bully pulpit” to encourage the states to do the same. At a minimum, reduce corporate taxes in order to be internationally competitive, as well as explaining to the economically illiterate that taxes on businesses raise prices on consumers (we have a lot of economic education to do).

    As a recovery starts taking shape, then we can talk about overall tax reform and can start hacking off big chunks of federal bureaucracy and reforming the entitlement programs. We need some wins under our belt so that we can be assured that people are listening first.

    If we can pull off a fairly quick turn around (lowering unemployment and improving the economy), we will have the standing with the electorate to really address the big things… we’ll be able explain the logic of entitlement reform (why it takes explanation to get people to understand that national participation in a Ponzi scheme is a bad idea, I have no clue, but that’s the truth). We will also gain credibility for rolling back statism in general, as we can educate people about how statism is the CAUSE of the “Great Recession”, and do so from a point where it’s been proven that it certainly wasn’t the cure.

    1. It is refreshing to finally see someone express a concrete plan to do something for the economy. Whether his plan is the right one or not at least it is a starting point for some serious thinking. We have tones of people who are excellent in identifying problems but we seem to be short on people who have solutions.

  5. I am trying to conceptualize the sales tax part of this. Is Cain talking about a 9% Federal sales tax on top of what we already pay the states? He must be. Interesting. If we all paid 9% only those who consume more would pay more.This might work as long as 100% of Americans participated. In fact, it is the only way to get the largesse gatherers back into the game.

    Interesting. I can’t stand Romney because he is a RINO from the libtard state. (although his resume’ is good) I am sticking with Ron Paul but I have to say I like Cain a little more all the time.

  6. This is an interesting plan and the first I have heard of it, but I am leary of any plan which instituted a national sales tax because while it may be initially low we cannot trust the government to keep it that way once it is in place.

    1. I don’t know, Steve. Any tax can be changed by congress so I don’t see this one as all that different. But what I really like is that he has put something specific on the table to talk about. It can be modified and improved upon if necessary. I just want to see more ideas for solutions to our economy rather than just talking about the necessary spending cuts.

  7. Cain has a lot of good ideas. The best thing about his most recent idea is that it is simple. However, a 9% sales tax is not the way to go. In places where sales taxes have been implemented, it has resulted in a corresponding drop in company receipts. Consumers spend the same amount of money, but the money from the tax goes to the government, rather than the company. The effect is just the same as a decline in consumer spending. In order to get the economy going again, however, consumer spending needs to go up, and not down. Companies need to get more money so they can pay employees and invest for the future.

    1. maybe, John, in the cases you’re referring to the decrease in corporate taxes were more than off set by the new sales tax. I this case we are talking about going from 35% to 9%. Surely prices for goods and services would fall such that the consumers would see their cost going down, don’t you think?

  8. “I don’t understand why this news is not getting more attention.”

    Your tongue was in your cheek when you typed that, right? Because the MSM can’t possibly highlight bad economic news after all the contortions and distortions they went thru to get O elected.

    Now, here’s what I was gonna say, but Pat already said it:

    “The good thing is, it won’t be that hard . . . . The list is simple: Expand energy production and exploration (down go gas prices immediately because of anticipated expansion of supply, up goes jobs). Repeal Obamacare . . . . Go on an immediate slash and burn run through Obama’s regulatory regime, then take a more methodical run through the whole thing to get rid of unnecessary and redundant regulations, as well as utilizing the “bully pulpit” to encourage the states to do the same. At a minimum, reduce corporate taxes in order to be internationally competitive. . . .

    As a recovery starts taking shape, then we can talk about overall tax reform and can start hacking off big chunks of federal bureaucracy and reforming the entitlement programs.”

    Bingo. That’s why it doesn’t have to be so hard to turn this boat around, if we are successful in Nov. 12.

    Unless the boat hits a major waterfall before Nov. 12, that is.

    cheers!

  9. The very first move this new conservative government makes MUST HAVE POSITIVE RESULTS! If the first move is massive spending cuts and throwing bureaucrats on the street, the American people will only feel pain and there will a horrible backlash

    Absolutely!

    1. Trestin, I’m not trying to make a case for Herman Cain. I am trying to make a case for potentially viable solutions to our most important problems. Cain has just done what others are yet to do. I’ll accept a good idea no matter where it comes from.

  10. I like this because now the very rich and ‘poor’ would pay some taxes as well. Once ‘poor’ people start paying some taxes, then they won’t say ‘spend, spend, spend’, but might actually think about what is necessary.

    If I paid $0 in taxes each year, I would love to raise taxes for everyone else (middle class), but if I make $15,000 a year and would have to pay $1,350, then I would think twice about raising taxes and spending more.

    I can’t believe that only 50% of people pay taxes. What kind of country is this. Nobody in Europe is avoiding taxes (not the poor, middle, or rich)…why can’t we do that here?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s