PRESS RELEASE from Gary Johnson
2012
GARY
JOHNSON CALLS 9-9-9 PLAN AN "APOLOGETIC, TIMID STEP"
October 21, 2011, Santa Fe, NM -- In
an
opinion piece published Friday on the Daily Caller
website, former New Mexico governor Gary Johnson has called Herman
Cain's 9-9-9 tax plan an "apologetic, timid step" toward the FAIR Tax
Johnson has long advocated.
Calling
Cain's plan a "rest stop" on the way to real reform, Johnson
wrote: "Give credit to Herman Cain for throwing out an idea that
has actually caused some debate in the presidential campaign about a
real issue: Taxes. Unfortunately, though, the criticism of his
9-9-9 plan is coming from the wrong direction. The complaints are
coming from candidates and others who, at the end of the day, are
secretly defending the status quo. They are saying we need to reform
taxes, but don't go overboard. No surprise there; the existing
tax code is the politician's best friend.
"The
real problem with Herman Cain's 9-9-9 plan is that it is an apologetic,
timid step toward what America really needs in order to ignite our
economic engine - replacing ALL federal taxes with one simple
consumption tax, commonly known as the FAIR Tax.
"Ironically,
it has been widely reported that even Herman Cain views 9-9-9 as some
kind of transitional step toward the FAIR Tax. As the only
candidate for president who is an unapologetic advocate of the FAIR
Tax, I have to ask: Why does it make sense to settle for a 'hybrid'
notion like 9-9-9, if the real objective is something else?
"Nearly
everyone agrees that our current tax system is a major obstacle to job
creation and real economic growth. It is a confusing mess
that not only stifles growth, but has become Washington's favorite
weapon when it comes to managing our corporate and personal behavior.
"In
contrast, eliminating taxes on income and instead taxing dollars when
they are spent, as with a FAIR Tax, does all the right things for the
economy. Federal taxes are eliminated from individual
paychecks and business earnings, allowing both to make their own
decisions about where their money goes. If it is spent, it is
taxed at 23%; if it is saved or invested, no taxes. And for that
money spent on necessities, regardless of income, the consumption tax
is "prebated" to insure that lower income families are protected.
Mr.
Cain's plan, however, simply adds an additional tax. The result
is that a good idea becomes a bad idea. Rather than eliminating
federal taxes on dollars until they are spent, 9-9-9 taxes each dollar
three times: When it is earned by a business, when it is paid to
an employee, and again when it is spent. The whole idea of the
FAIR Tax, which Mr. Cain claims to support, is to only tax that dollar
once - and do so in such as way that rewards productivity, savings and
investment.
"Also,
Mr. Cain says 9-9-9 will throw out the existing tax system.
Actually, it doesn't. Somebody will still have to collect the 9%
business tax and the 9% personal income tax - and that somebody will
require reporting about who's working and how much they are making. It
might be a bit simpler, but still looks and sounds like an IRS to
me. The FAIR Tax, on the other hand, does allow eliminating the
IRS. In fact, the states could collect the tax and be compensated
for doing so. The Feds will have no reason to require reporting
about employees or how much they are paid.
"The
9-9-9 plan is a perfect example of the kind of policy timidity that
makes the status quo so difficult to dislodge. For years, Herman
Cain advocated the FAIR Tax. But once he entered the arena, he took a
good idea and 'moderated' it into a hybrid something that proposes a
little bit of new thinking, but hangs on to the old thinking that has
gotten us into the mess we are in today. I'm not sure what he's
afraid of.
"If
throwing out the tax system and replacing it with a FAIR Tax makes
sense, why do we need a 9-9-9 rest stop along the way?"