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?