Herman Cain's economic proposals have evolved since the outset of his
campaign; the 9-9-9 plan has garnered a lot of attention, and was a
central topic of discussion at the presidential debates on October 11
and October 18, 2011. Here are a couple of other reactions: Tax Policy Center, Gary Johnson.
reprinted 10/16/11 from
Herman Cain's 999 Plan
Vision for Economic
- The natural state of our economy is prosperity. Freedom ensures
- In order to return to prosperity, Government must get off our
backs, out of our pockets and out of our way
- Production drives the economy, not spending. Production is the
engine, consumption is the caboose.
Risk taking drives growth .
- We can not spend our way to prosperity.
- Government spending is like taking a bucket of water from the
deep end of the pool, pouring it in the shallow end. Then they HOPE
that the water level will CHANGE.
Measurements must be dependable.
- Business formation and job creation are dependent on
entrepreneurs taking risks.
- Investors who fund those entrepreneurs likewise take risks.
- A dollar must always be a dollar just as an hour is always 60
- Sound money is crucial for prosperity.
UNITE, never DIVIDE;
UNITED around ECONOMIC GROWTH
- When one party is so focused on spending so that the other must
focus on cutting, we must unite around economic growth
- Unite income tax payers with payroll taxpayers so we all pull for
- Unite those wanting to eliminate deductions with those seeking
- Unite the Flat-Taxers with the Fair-Taxers
current economic crisis calls for bold action to truly stimulate the
economy and Renew America back to its greatness. The 9-9-9 Plan gets
Washington D.C. out of the business of picking winners and losers,
using the tax code to dole out favors, and dividing the country with
class warfare. It is fair, simple, transparent and efficient. It taxes
everything once and nothing twice. It taxes the broadest possible base
at the lowest possible rates. It is neutral with respect to savings and
consumption,capital and labor, imports and exports and whether
companies pay dividends or retain earnings.
- 9% Business Flat Tax
- Gross income less all purchases from other U.S. located
businesses, all capital investment, and net exports.
- Empowerment Zones will offer deductions for the payroll of
those employed in the zone
- 9% Individual Flat Tax.
- Gross income less charitable deductions.
- Empowerment Zones will offer additional deductions for those
living and/or working in the zone.
- 9% National Sales Tax.
a state sales tax, which is an add-on tax that increases the price of
goods and services, this is a replacement tax. It replaces taxes that
are already embedded in selling prices. By replacing higher marginal
rates in the production process with lower marginal rates, marginal
production costs actually decline, which will lead to prices being the
same or lower, not higher.
- Economic Impact
to former Reagan Treasury official Gary Robbins, of Fiscal Associates,
the 9-9-9 Plan will expand GDP by $2 trillion, create 6 million new
jobs, increase business investment by one third, and increase wages by
9-9-9 Plan: Summary
- Removes all payroll taxes and unites all tax payers
- Provides the least incentive to evade taxes and the fewest
opportunities to do so
- Lifts a $430 billion dead-weight burden on the economy due to
compliance, enforcement, collection, etc…
- Is fair, simple, efficient, neutral, and transparent
- Ends nearly all deductions and special interest favors
- Features zero tax on capital gains and repatriated profits
leave our shores without the Business Tax or the Sales Tax embedded in
their cost, making them world class competitive. Imports are subject to
the same taxation as domestically produced goods, leveling the playing
- Lowest marginal rates on production
- Kills the Death Tax
- Allows immediate expensing of business investments
- Eliminates double taxation of dividends
- Increases capital formation which aids capital availability for
- Increased capital per worker drives productivity and wage growth
- Features a platform to launch properly structured Empowerment
Zones to renew our inner cities
- The pro-growth, pro-job, pro-export economic policies of the
9-9-9 Plan equals a strong dollar policy
Phase 2 – The Fair Tax
a backdrop of the economic renewal created by the 9-9-9 Plan, I will
begin the process of educating the American people on the benefits of
continuing the next step to the Fair Tax.
- Ultimately replaces individual and corporate income taxes
- Ends the IRS as we know it and repeals the 16th Amendment
Friends of Herman Cain (August 2011)
Note: This buildt on earlier Cain proposals, below. It included a
bit of sloganeering ("Companies
don’t ship jobs overseas, Liberals ship capital overseas and the jobs
merely follow."). It's also a bit woolly (@CainPress tweeted on
Aug. 31, "For clarification: the "9-9-9 plan" is phase 1 of 's economic plan. Phase 2 is
instituting Fair Tax.") The major new point is the call for
bolder action in the form of the "9-9-9 plan," which calls for a 9%
business flat tax, a 9% individual flat tax, and a 9% national sales
Cain's Vision for
Economic Growth Part 1
Vision for Economic Growth
• The natural state of our
economy is prosperity. Freedom ensures that.
• We must get the government off our backs, out of
our pockets and out of our way in order to return to prosperity
• Policy uncertainty is killing the economy
Economic Guiding Principles
1. Production drives the economy, not spending
• We can not spend our way to prosperity
• Government spending IS taxation
• Government spending is like taking a bucket of
water from the deep end of the pool, pouring it in the shallow end.
Then they HOPE that the water level will CHANGE.
2. Risk taking drives growth
• Business formation and job creation are dependent
on entrepreneurs taking risks
• Investors who fund those entrepreneurs likewise
3. Measurements must be dependable
• A dollar must always be a dollar just as an hour is
always 60 minutes
• Sound money is crucial for prosperity
We Must Unite Not Divide
• When one party seeks to
spend so that the other party must focus on cutting, we must unite
around economic growth
• Unite all tax payers, don’t divide them into
“income” tax payers vs. “payroll” tax payers
• Unite those wanting to eliminate deductions with
those seeking lower rates
• As a first step, unite the “Flat-Taxers” with the
Economic Growth is the Key
• This is the worst recovery
since the Depression
• If the President’s goal was to tie for last place
with the previous worst recovery, he failed by 6 million jobs
• If we had a typical recovery, 13 million more
Americans would be employed today
• That means more tax revenue, less government
spending and 13 million less people opposed to reasonable spending cuts
• The Super Committee must deliver a robust growth
• America can’t wait for 2012, we need growth NOW.
Phase 1 - Immediate Boost
• As I have outlined, the
following represent the minimum for feeding the economic engine and are
the “low hanging fruit” offering the most “bang for the buck”
• Reduce individual and business income taxes to a
• Eliminate taxes on repatriated foreign profits and
• The capital gains tax is a wall separating those
with ideas from those with money
• Why would we want to wall off those with ideas?
That’s where we get business formation, job creation and innovation.
• When companies sell products overseas they face
double taxation when those profits are brought home (repatriation) to
invest in America and pay its workers
• Companies don’t ship jobs overseas, Liberals ship
capital overseas and the jobs merely follow.
Phase 1 - Enhanced Plan
• Current circumstances call
for bolder action
• The Phase 1 Enhanced Plan incorporates the features
of Phase One and gets us a step closer to Phase two
• I call on the Super Committee to pass the Phase 1
Enhanced Plan along with their spending cut package
• The Phase 1 Enhanced Plan unites Flat Tax
supporters with Fair tax supporters
• Achieves the broadest possible tax base along with
the lowest possible rate of 9%
• It ends the Payroll Tax completely – a permanent
• Business Flat Tax – 9%
• Gross income less all investments, all purchases
from other businesses and all dividends paid to shareholders
• Empowerment Zones will offer additional deductions
for payroll employed in the zone
• Individual Flat Tax – 9%
• Gross income less charitable deductions
• Empowerment Zones will offer additional deductions
for those living and/or working in the zone
• National Sales Tax – 9%
• This gets the Fair Tax off the sidelines and into
Phase 2 – The Fair Tax
• Amidst a backdrop of the
economic boom created by the Phase 1 Enhanced Plan, I will begin the
process of educating the American people on the benefits of continuing
the next step to the Fair Tax.
• The Fair Tax would ultimately replace individual
and corporate income taxes
• It would make it possible to end the IRS as we know
• The Fair Tax makes our exported goods and services
the most competitively internationally than any other tax system.
Phase 1 Enhanced Plan – Summary
• Unites all tax payers so we
all pay income taxes and no one pays payroll taxes
• Provides the least incentive to evade taxes and the
fewest opportunities to do so
• Lifts a $430 billion dead-weight burden on the
economy due to compliance, enforcement, collection, etc.
• Is fair, neutral, transparent, and efficient
• Ends nearly all deductions and special interest
• Features zero tax on capital gains and repatriated
• Lowest marginal rates on production
• Allows immediate expensing of business investments
• Dividend deductibility will help retirees, improve
accounting, and moderate stock-option driven executive compensation
• Increases capital formation. Capital per worker
drives productivity and wage growth
• Capital formation will aid capital availability for
• Features a platform to launch properly structured
Empowerment Zones to revitalize our inner cities
• We all know the Fed has tripled the money supply
since 2008. They have been printing money out of thin air to finance
the Obama spending machine. While true Fed reform that restores sound
money may have to wait for my election, the best thing we can do now is
to pursue policies that increase the DEMAND for dollars to help
mitigate the risks associated with the increase in the supply.
• Pro-growth economic policies equal a strong dollar
RELEASES from Friends of Herman Cain
Wednesday, June 29, 2011
For More Information:
Cain Shares "Economic Vision" in
Greenville, South Carolina
(Greenville, SC)- Republican
presidential candidate Herman Cain shared his "Economic Vision: Jobs
for America" plan today at NEXT Innovation Center in Greenville, South
Cain's plan details his three "Economic Guiding Principles":
- Production drives the economy.
- Risk-taking drives growth.
- Measurements must be dependable.
Production drives the economy.
Cain believes that the federal government should ease the burdens
of excessive taxation and regulation to spur economic growth to
increase production. This includes lowering the top corporate and
personal income tax rate to a maximum rate of 25 percent, suspending
taxes on repatriated profits and making the lowered tax rates
permanent. He also proposes a regulatory reduction commission that
would seek to review and potentially eliminate some current regulations
whose compliance costs weaken job creators.
Risk-taking drives growth.
Cain believes there must be increased
access to capital. To do so, he proposes eliminating taxes on capital
gains and their dividends. This would also incentivize
companies to invest in worker training programs, new equipment and
emerging technologies. History shows that the largest
beneficiaries of such a reduction on capital gains taxes are new
"The capital gains tax represents a wall between
people with money and people with ideas," Cain said. "And people with
ideas are the catalyst for new businesses and new job growth."
Measurements must be dependable.
Cain's plan would help
stabilize the value of the dollar in order to provide monetary
stability by dramatically reducing the national debt through meaningful
spending cuts and restructuring government assistance programs.
Stabilizing the value of the dollar would help to eliminate uncertainty
that impedes business expansion and job creation.
Cain believes that implementing these initiatives would provide
economic certainty to businesses for investment, innovation and hiring
purposes. He estimates that these changes would cut the unemployment
rate in half when fully implemented.
Cain has held several executive roles in the private sector: as a
business analyst for Coca-Cola
; as Vice President of
the Pillsbury Company
, leading the turnaround of 450 Burger
restaurants; as Chairman and CEO of Godfather's
taking the company from the brink of bankruptcy, returning it to
profitability and leading his management team in a buyout in just 14
months; and as the Chairman, President and CEO of the National
leading the nation's single largest private industry. He has
the boards of directors of several major American and multinational
corporations, including Whirlpool
, Reader's Digest
as a job creator and "turnaround artist" led
his peers to elect him the Chairman of the Federal Reserve
Bank of Kansas City
, as well as a member of the late Secretary
Jack Kemp's "Economic Growth and Tax Reform Commission
FOR IMMEDIATE RELEASE:
Thursday, April 14, 2011
FOR MORE INFORMATION: