Herman Cain's 999 Plan
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
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.
Risk taking drives growth .
Business formation and job creation are dependent on entrepreneurs taking risks.
Investors who fund those entrepreneurs likewise take risks.
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 “Fair-Taxers”
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 solution.
America can’t wait for 2012, we need growth NOW
Phase 1 - 9-9-9
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 holiday!
Zero capital gains tax
Ends the Death Tax.
Eliminates double taxation of dividends
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 the game.
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 it.
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 favors
Ends all payroll taxes
Ends the Death Tax
Features zero tax on capital gains and repatriated profits
Lowest marginal rates on production
Allows immediate expensing of business investments
Eliminates double taxation of dividends
Increases capital formation. Capital per worker drives productivity and wage growth
Capital formation will aid capital availability for small businesses
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 policyhttp://www.hermancain.com/999plan