...but it will also be a heavy burden on the poor, low income, and working-class folks...not to mention a drain on the tax revenues needed to fund Social Security and Medicare.
But before I go on my rant about Herman Cain's tax plan, let me first explain why ANY Republican tax plan will be designed to achieve one thing, and one thing only...to redistribute MORE wealth to the top 1%.
For years, since the days of Ronald Reagan, I've always associated myself with the Republican Party. I naively bought in to the concept that what's good for my boss (the CEO) would also be good for me, that prosperity would also rain down on me...the now-infamous trickle down theory, the idea that tax breaks or other economic benefits provided by government to businesses and the wealthy will benefit poorer members of society by improving the economy as a whole.
But since I've been unemployed for these past 3 years and have researched this theory further, I've found this not to be true. Now that I'm on "the other side of the fence" so to speak (outside the economic circle), I know for a fact, that it's not true.
I know that most Republican voters still cling to this belief, and will continue to vote against their own best interests. I know what Republicans think and believe, and early on during the Tea Party movement, I also believed in their ideas too. I was once one of them. But the times, the economic playing field, and my own personal circumstances, have allowed be to finally see the light.
I sometimes think what Ronald Reagan would think about the calloused and irresponsible people the Republicans have in their Party today. Holding unemployment benefits hostage for extending tax breaks for the rich? Holding the full faith and credit of the U.S. Government hostage for cuts in social programs for the poor? That's not the America that my father served in two wars for. George H.W. Bush wanted to soften some of Reagan's programs and promised "a kinder and gentler nation" What happened to that nation?
The Republican's sudden and so-called concern over debt and deficits is completely bogus. After all, most of our current debt was acquired under George W. Bush: Bush spending, Bush wars, and Bush tax cuts. This is an indisputable fact. Republicans (in all levels of government) had just as many (if not more) earmarks as did the Democrats.
It all comes down to this one simple statement: Large corporate interests, by proxy through their Republican puppets, do not mind using YOUR tax dollars to spend on defense, corporate subsidies, government contracts and other programs that THEY can benefit from, but they don't want YOU to use THEIR tax dollars to spend on programs that THEY don't need or could benefit from - such as Social Security and Medicare.
Now the Republicans, by holding the nation's credit hostage, has forced upon us an unconstitutional Super Committee to decide this for us.
But then again, hasn't that been the Republican Master Plan all along, by deliberately starving tax revenues to FORCE cuts in spending to social programs and safety nets for the working-class, while letting the rich completely off the hook?
We keep hearing from the Republicans, "We don't have a revenue problem, we have a spending problem." But in truth, the exact opposite is true. While yes, we can be more conservative in our government spending, and look to reign in corruption, abuse, and waste (such as Republican Florida Governor Rick Scott, who ran a company involved in the nation's largest Medicare fraud case.) But for the last ten years since the Bush tax cuts, we have indeed had a serious revenue problem. And now with high unemployment, even more so.
From 2005 to 2010, Herman Cain wrote a weekly commentary for his company The New Voice, Inc. He dedicated a few of his columns to register full support for President George W. Bush’s disastrous idea to privatize Social Security. Viewing Social Security as “immoral” and “oppressive,” Herman Cain blasted Democrats for supporting the “involuntary servitude” of African Americans through the Social Security and payroll tax system.
Herman Cain says “I’m very proud of the relationship I have with the Koch brothers as well as Americans For Prosperity.” The Koch brothers have a campaign to kill Social Security and Americas for Prosperity even has an indoctrination program to turn school kids against this very popular social program -- maybe so when they're older, they'll vote against it.
With all the "occupy" protests going on around the country (and the rest of the world) railing against corporate greed, political injustice, corruption in government, and income inequality, one would NOT expect "more of the same" regarding a tax policy like the 9-9-9 Plan from Herman Cain. Wouldn't that be very badly ill-timed right now? But Herman Cain pushes forward, as though nothing were happening (and I suspect that he and those like him, would also ignore a full scale uprising as well.)
The GOP has accused everybody else of wanting to "spread the wealth
around", but in truth, it's been they who've been sucking it all to
the top 1% for the last 40 years!
The inside scoop on Herman Cain's 9-9-9 Tax
Scam Plan is
finally revealed! The problem with the 9-9-9 Plan...SOLVED!
I'll completely skip commenting on the part of Herman Cain's 9-9-9 Tax Plan where he proposes a 9% National Sales Tax, because it's become common knowledge by now that it would disproportionately tax the poorest people, who spend the greater part of their income in consumption. So I'll move on from there.
Herman Cain says his tax plan "provides the least incentive to evade taxes". Who evades taxes? Wealthy people with off-shore bank accounts might; and multi-national corporations who do business overseas and out-source jobs could also. But most average people have no say and have no way to "evade" or "dodge" taxes. They don't have tax attorneys looking for loop holes in the tax code. And besides, most average people have their taxes automatically taken out of their paychecks by their employers. If they're lucky, they'll get a refund from the IRS the following year.
Herman Cain says his plan "lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, and collection". How? By eliminating more jobs such as H&R Block tax preparers and IRS auditors? I suppose most taxpayers will have no problem with this...except the ones who lose their jobs of course. And I suppose Tim "Turbo-Tax" Geithner wouldn't complain either.
Herman Cain boasts that "increased capital per worker drives productivity" This part is confusing. Does this mean more money goes into the bosses' pockets while the employee works harder? I couldn't understand this part.
And Cain's tax plan says it will repeal the 16th Amendment (which also allows for collecting property taxes). Article I, Section 9, Clause 4: This clause basically refers to a tax on property, such as a tax based on the value of land. Does this also mean no taxes on mansions, corporate jets, and yachts?
Cain's 999 plan also states "lowest marginal rates on production". I think this means ending the higher tax rates for the wealthy, as "production" refers to wealthy people, as in "productive" people. That's how we discreetly refer to very rich people now..."productive people".
How the Rich will Get Richer
Herman Cain's tax plan "eliminates double taxation of dividends" This part I fully understand. It gives the rich more tax breaks.
If Herman Cain earns a dollar from his pizza business and pays a corporate income tax, then pay himself a salary, Cain say his salary shouldn't be taxed because his business has already paid a tax. Hence "double taxation". (You've heard about Herman Cain's loaf of bread economy haven't you?)
The first taxation occurs at the company's year-end when it must pay taxes on its earnings (corporate taxes). Herman
Cain wants corporate taxes lowered from 35% to 9%. But because of a myriad breaks and loopholes that other countries generally do not
offer (such as China, who has a 25% corporate tax), American corporations rarely pay this "effective"
rate, and many pay no taxes at all, and actually get a subsidy from taxpayers....such
as the most profitable company in human history, Exxon Mobil.
The second taxation Cain refers to occurs when the shareholders, such as company executives like CEOs and those on the board of directors, who pay themselves the bulk of their salaries in stock options. They receive dividends, which come from the company's after-tax earnings. Cain doesn't want to tax CEOs (and others) on these dividends.
Also, when CEOs and company executives sell these stocks (and have a "realized capital gain"), they pay less tax than they would on regular income in the form of a capital gains tax. (You heard about Warren Buffett's secretary, right?) Herman Cain also wants a zero tax on these earnings as well! (it used to be 20% under Bush, but is now at 15%)
Keeping All the Money in the Top 1%
And if one of these very wealthy CEOs, hedge fund managers, or bankers passes away? Herman Cain wants to end inheritance taxes completely, keeping all their accumulated wealth in the top 1%. (It's an estate tax, but Cain calls this "the death tax", the same way they referred to "death panels"....giving it a negative connotation to make it sound as terrible as possible. But it's only terrible when poor people are made MORE poor. And that's what the Republicans are striving for.)
Currently the estate tax only affects estates of considerable size, over $5 million for an individual and $10 million for couples -- but it also provides numerous credits (including the unified credit) that allow a significant portion of even large estates to escape taxation - with a maximum tax rate of 35% above the exemption. The maximum estate tax, gift tax, and generation-skipping tax rate was 55% before the Bush tax cuts.
So Herman Cain (and his wealthy Koch brothers backers) want much lower corporate taxes, to pay no taxes on dividends, pay no taxes on capital gains, and pay no inheritance tax. Silly me...and here I thought we had a problem with budgets and deficits. Or is it just Social Security and Medicare? I guess that means we'll just have to wipe out Social Security and Medicare completely. It's "wasteful spending" and "we" can't afford it any longer without enough tax revenues. But hey! Let's give the oil companies more subsidies! That's not wasteful spending!
"Hey, John Boehner! I thought you said we don't have a revenue problem!"
So Herman Cain's 9-9-9 Tax Plan is a win-win-win for wealthy corporate executives and ubber-wealth people (the top 1%), but only offers a meager income tax break for those living below the official government poverty level, which is only $10,890 a year for a single person. Big frigging deal!
Herman Cain has many years of experience as a CEO, so he knows what CEOs would like for a tax plan. Thanks a lot Herman Cain!
The True Republican Master Plan
But it's not just Herman Cain who subscribes to this tax policy -- ALL Republicans are attempting to starve tax revenues to FORCE cuts in spending in social programs and safety nets for the working-class, while letting the rich completely off the hook. Ever since Social Security and Medicare was first initiated for the working-class, the rich and powerful industrialists and bankers (and their GOP puppets) have been totally against it. After you bust your ass all your life, working to make them rich, they don't want you to have healthcare and a pension when you get too old and sick to work any longer - - - when you are no longer beneficial to them. Now you're just "wasteful spending", you don't contribute, you're obsolete, you're no longer of any use to them. Now they just want to bury you in a hole like garbage.
Let me repeat, it all comes down to one simple statement: Large corporate interests, by proxy through their Republican puppets, do not mind using YOUR tax dollars to spend on defense, corporate subsidies, government contracts and other programs that THEY can benefit from, but they don't want YOU to use THEIR tax dollars to spend on programs that THEY don't need or could benefit from - such as Social Security and Medicare.
Herman Cain once worked for the Federal Reserve and is part of Corporate America, and therefore is a part of the problem. He and his nine-nine-nine tax plan would only be a win-win-win for the rich, and a lose-lose-lose for everyone else. "How dare you insult my intelligence sir!"
But ANY Republican tax plan will be designed to achieve one thing, and one thing only...to redistribute MORE wealth to the top 1%. So even Republican voters get screwed unless they're multi-millionaires.