NOTE: Previously I suggested Dennis Prager as part of this group. I actually meant Mike Gallagher. From what I have heard, Prager is decidedly anti-Clinton and not a Trump apologist. My apologies...
Carl von Clausewitz famously said “War is the continuation of politics by other means”. He is of course right. But it’s also true that politics is war by other means.
Frankly, I’m tired of listening to guys like Sean Hannity, Dennis Prager, Herman Cain and others suggest that I’m not a real conservative or that I must be a closet Hillary supporter or something of that ilk because I do not support Donald Trump for president. (Which probably explains why I listen to a LOT more sports talk radio these days…) These paragons of conservatism gripe “Why aren’t they focusing their attention on Hillary?” or “Why haven’t you been focusing this much energy on President Obama?” Well, the fact is, since my first blogposts seven years ago: Racism: America’s Original Sin and The Gift of Freedom, I have done little else than write about the perils of the cancer of liberalism, tried to highlight the irrefutable fact that free markets, individual freedom and limited government are the keys to prosperity, and argue that our Constitution is the greatest document in human history.
Now I don’t harbor the conceit that Hannity, Cain or any of the others are actually talking about me specifically. They don’t know me and I’ve no idea if they’ve ever even read my blog. But there are no doubt more than a few conservatives who have spent years listening to the talking heads on “conservative radio” opining that if we only had a real conservative carrying the banner for the GOP then we’d have a chance to save the nation, who are now stunned to watch as those same talking heads have swooned like teenage girls as they fawn over Donald Trump. And now they lecture us that we’re somehow traitors to the conservative cause because we don’t become sycophants too?
The reality is, standing for conservative principals applies whether a candidate is in the Democrat or the Republican Party. Principals don’t bend just because the liberal candidate is on your side of the isle. That’s why I supported Christine O’Donnell over RINO Mike Castle. Sure, she may have been a flawed candidate, but she was an actual conservative rather than being part of the squish GOP establishment that has proven itself to be all about power and privilege – its own – as opposed to standing for limited government and actually trying to stop Barack Obama.
So today we find ourselves subjected to tirades that the #nevertrump movement – of which I’m not a member – and conservatives who are trying to figure out how to push an illiberal liberal from the perch the media anointed him with – via $2 billion in fawning coverage – atop the GOP are somehow not true conservatives at all but are really Hillary supporters. Somehow if we still fight, even if it’s only for the flicker of hope that somehow Trump will implode or the convention will somehow figure out how to nominate someone else, we are somehow turncoats who were never believers in the first place.
That is, frankly, bullshit. It’s not that we don’t have disdain for fascist Barack Obama’s extra constitutional progressive policies. It’s not that we don’t despair at the thought of a vain liberal, crony capitalist opportunist sitting in the White House. We do. But the point is, we don’t want a vain liberal, crony capitalist opportunist running for president under the banner of the party that claims to represent conservatism and limited government. While I agree that a President Hillary Clinton – or Bernie Sanders or Pocahontas Warren – would be a disaster for freedom and prosperity that doesn’t mean that I have to support Donald Trump as the savior. The reality is, Donald Trump is every bit as much a big government crony capitalist as Clinton is. Well, maybe he’s a bit less of one, but at least Clinton only whined about the “vast right wing conspiracy” where as Trump has actually suggested that Jeff Bezos bought the Washington Post as a tax dodge with the implicit threat that once in office he will use the mechanisms of government to punish Bezos and Amazon. Maybe he’s right about Bezos, but his threat, along with a similar approach to dealing with Ford and Carrier certainly suggests that a President Trump won’t be much of a free market and limited government guy.
Which brings us back to the point… conservatives are conservatives because they are (generally) conservative and believe in things like limited government, individual freedom and free markets. Conservative does not equal Republican, particularly when the Republican banner is being carried by a guy who is anathema to all of those things. That does not mean that I won’t vote for or even argue for Trump against Clinton in the general. I may do both, albeit reluctantly, but we’re not there yet. Strange things can happen… I remember shaking hands with Gary Hart in Florida a few months before he shot himself in the political head when he invited reporters to follow him, and they did.
Until Donald Trump is absolutely the only real option for keeping Hillary Clinton out of the White House, he will not get my support and I will continue to do what I can to highlight the fact that he is no conservative savior, no conservative and no savior at all. He is a petty, spiteful, manipulative crony capitalist narcissist who would continue Barack Obama’s assault on the Constitution. Maybe it will be all for naught and maybe I’ll end up pulling the lever for him in the general as a nod to the reality that the other crony capitalist in the race would be even worse, but don’t accuse me of being a closet liberal because I don’t rejoice that bootlickers like Hannity et al have turned the party of Abraham Lincoln into the party of Bozo the Clown.
Showing posts with label herman cain. Show all posts
Showing posts with label herman cain. Show all posts
Tuesday, May 17, 2016
Monday, November 28, 2011
Looking to "experts" - How Herman Cain can revive his campaign for the GOP nomination
Herman Cain is the only person in the GOP field who has significant experience running a private company from the perspective of an operator. Yes, Mitt Romney has significant experience in business, but for the most part his experience is as a consultant or an investor rather than as an operator. When I say operator I’m talking about being in charge of making payroll, worrying about regulators – local, state and national – setting policy and executing, all while inspiring employees to succeed and earning a profit. Those are the kinds of things that Herman Cain has done – more than once. He revived a moribund Philadelphia Burger King unit with 400 floundering stores. He slashed the fat from a money losing Godfather’s Pizza chain and returned it to profitability… and eventually bought the company himself.
As an operator Cain was on the front lines of the single biggest threat to the economic health of the United States today: Government regulation. As such, Cain understands exactly what needs to be done to free up the nation’s entrepreneurial spirit. Of course he’s also led a major national organization, the National Restaurant Association, sat on the board of Fortune 500 companies like Nabisco and Whirlpool and spent seven years serving in various capacities (including Chairman of the Board) of the Federal Reserve Bank of Kansas City.
Cain’s hands on experience actually running businesses and his oft articulated dedication to a constitutionally limited government make him the best choice amongst the current GOP lineup to lead the country out of its economic malaise. Not to forget 9-9-9 as well. Unfortunately for him however, while paring back government to spur innovation, investment and prosperity is the single most important job of the next president, it’s not the whole job. As such I have two main concerns about Herman Cain today.
Firstly I’m troubled by his lack of big picture thinking on foreign affairs and national defense. From his “listen to the experts” approach to Iraq and Afghanistan to his apparent confusion about Obama’s Libya policy to his lack of clarity the Palestinian “Right of Return”, one is not left with a feeling of great confidence. I might suggest however that the “out of his league” impression he leaves might not necessarily be fatal. Given that the next president’s single biggest priority must be a “laser focus” on reviving the American economy, having someone comfortable in international affairs is not a priority. But having someone competent with a strong team is. A coherent policy on foreign affairs is vitally important in a global economy. At the same time, with an ever changing cast of rouge characters around the world, national security must be an integral part of the foreign policy equation. As such, Mr. Cain could ameliorate the reservations many have about his international relations aptitude and skillset by immediately recruiting John Bolton to lead his foreign policy team and giving him a supporting cast made up of people like Max Boot and Dinesh D'Souza.
I’ve never believed that a presidential candidate needs to know the names of every leader and would-be leader in every country around the world. They must however have (and articulate) a relatively clear general approach to foreign affairs and have a basic familiarity with the major issues of the time. By harnessing such a clear thinking, well respected and no nonsense champion like Bolton to drive his foreign and defense policies, Cain would in one decisive moment demonstrate his intent to field a serious foreign policy team that would implement a robust and American centric (as opposed to an international or global centric) foreign policy that would both comfort allies and put enemies on notice. A John Bolton led team would immediately give voters confidence that while Cain may be weak on the specifics, he understands the importance of foreign affairs and defense policy to the job he is seeking and signal his administration’s intent to give them the level of attention and resources they deserve.
The second concern with Cain has to do with the harassment accusations. As I wrote at the time, I doubt the veracity of the charges. My concern however is that given more than a week’s notice the campaign seemed to be so unprepared once the issue became public. A week’s notice and they seemed befuddled. That falls on Mark Block, Cain’s campaign manager. As does his setting up of the disastrous interview with The Milwaukee Journal Sentinel a couple of weeks later. Together these two self
inflicted wounds may have sunk the Cain campaign. As such, if the campaign is going to find its footing again Mr. Cain should replace Mr. Block, or at a minimum partner him with someone like Dana Perino who’s better attuned to the what a presidential candidate should and shouldn’t be doing and saying out on the campaign trail. Loyalty is laudable, but when that loyalty endangers the raison d'ĂȘtre of the endeavor in the first place, it becomes a liability. The greatest thanks Mr. Cain could pay Mr. Block’s efforts would be to become President Cain rather than candidate Icarus who fell from the sky without ever achieving his objective.
Mr. Cain frequently talks about looking to “experts” on a wide variety of issues. Certainly a multitude of said experts are necessary to lead a nation of 300 million people, administer multi trillion dollar budgets and operate in an international arena of constantly shifting alliances and relationships. Candidate Cain asks the American people to have confidence in his ability to draw on the expertise and skills of others to supplement his knowledge and experience. He could earn that confidence reaching out and harnessing the skills of such experts today to help him become President Cain. If he can’t engage experts now, to help him revive his campaign and help him win the presidency in the first place, we’re probably better off not seeing how the policy would have been implemented once he entered the Oval Office.
As an operator Cain was on the front lines of the single biggest threat to the economic health of the United States today: Government regulation. As such, Cain understands exactly what needs to be done to free up the nation’s entrepreneurial spirit. Of course he’s also led a major national organization, the National Restaurant Association, sat on the board of Fortune 500 companies like Nabisco and Whirlpool and spent seven years serving in various capacities (including Chairman of the Board) of the Federal Reserve Bank of Kansas City.
Cain’s hands on experience actually running businesses and his oft articulated dedication to a constitutionally limited government make him the best choice amongst the current GOP lineup to lead the country out of its economic malaise. Not to forget 9-9-9 as well. Unfortunately for him however, while paring back government to spur innovation, investment and prosperity is the single most important job of the next president, it’s not the whole job. As such I have two main concerns about Herman Cain today.
Firstly I’m troubled by his lack of big picture thinking on foreign affairs and national defense. From his “listen to the experts” approach to Iraq and Afghanistan to his apparent confusion about Obama’s Libya policy to his lack of clarity the Palestinian “Right of Return”, one is not left with a feeling of great confidence. I might suggest however that the “out of his league” impression he leaves might not necessarily be fatal. Given that the next president’s single biggest priority must be a “laser focus” on reviving the American economy, having someone comfortable in international affairs is not a priority. But having someone competent with a strong team is. A coherent policy on foreign affairs is vitally important in a global economy. At the same time, with an ever changing cast of rouge characters around the world, national security must be an integral part of the foreign policy equation. As such, Mr. Cain could ameliorate the reservations many have about his international relations aptitude and skillset by immediately recruiting John Bolton to lead his foreign policy team and giving him a supporting cast made up of people like Max Boot and Dinesh D'Souza.

The second concern with Cain has to do with the harassment accusations. As I wrote at the time, I doubt the veracity of the charges. My concern however is that given more than a week’s notice the campaign seemed to be so unprepared once the issue became public. A week’s notice and they seemed befuddled. That falls on Mark Block, Cain’s campaign manager. As does his setting up of the disastrous interview with The Milwaukee Journal Sentinel a couple of weeks later. Together these two self

Mr. Cain frequently talks about looking to “experts” on a wide variety of issues. Certainly a multitude of said experts are necessary to lead a nation of 300 million people, administer multi trillion dollar budgets and operate in an international arena of constantly shifting alliances and relationships. Candidate Cain asks the American people to have confidence in his ability to draw on the expertise and skills of others to supplement his knowledge and experience. He could earn that confidence reaching out and harnessing the skills of such experts today to help him become President Cain. If he can’t engage experts now, to help him revive his campaign and help him win the presidency in the first place, we’re probably better off not seeing how the policy would have been implemented once he entered the Oval Office.
Monday, November 14, 2011
A trillion dollar hit job - who really wins from the Herman Cain scandal?
Having spent three quarters of my adult life working in restaurants, I can tell you that I find the accusations against Herman Cain difficult to believe. Not that sexual harassment doesn’t occur in the restaurant industry, because it does. Rather, because the industry has no shortage of itinerant and attractive young women who would be more than happy to indulge Mr. Cain in whatever peccadilloes he might have. If Mr. Cain were prone to using his position to coerce women into sexual favors, which is exactly what Ms. Bialek is accusing him of, I cannot imagine that there would not be women coming out of the woodwork with stories of his antics. Frankly, he wouldn’t have even needed to use coercion. For a man of power and influence seeking to find willing partners, the restaurant industry would be the equivalent of shooting fish in a barrel.
Instead of credible, demonstrably true charges, what we have is a handful of women coming out with specifically non specific accusations of “sexual harassment”. And the problem is, there seems to be no way for Mr. Cain to escape the attacks. It’s like being asked “Mr. Smith, are you still beating your wife?” and you respond that you’ve never laid a hand on her but the headline the next day shouts “Mr. Smith says he’s no longer beating his wife.” The accusation alone is enough. Enabled by a pliant media, these women have been able to detour, if not derail, a promising political campaign.
Who might benefit from this? Primarily two groups: The left (read Democrats) and Washington insiders of both parties.
The left does not like Herman Cain for two reasons. The first is because he’s an unabashed believer in American exceptionalism. At the end of the day he believes that a man in America has the opportunity to succeed through his own efforts, regardless of their background or demographic characteristics. The second reason they don’t like him is that he has the temerity to believe those things while being black.
That latter bit is what really makes the Democrats nervous. The fact that Herman Cain is a black conservative who is a vociferous opponent of the entitlement state creates a potential fatal crack in one of their core constituencies, blacks. Blacks make up about 13% of the population and they vote Democrat in excess of 90% of the time – 96% of blacks voted for Barack Obama. To put that in perspective, if a candidate needs 50% of the total vote to claim victory and they automatically get 90% of the black vote, they already have 11% of their 50% right there. That means that of the remaining 87% of the population, said candidate need only attract 39% of the vote. That’s a pretty good deal for Democrats.
Herman Cain puts that math in jeopardy. By demonstrating that a black man can succeed in the United States without depending on affirmative action, without being a ward of the state, without being an agitator for redistribution of wealth, he shatters the myth propagated by the left that blacks are victims and cannot succeed without government help. Once they recognize that, that 90% Democratic foundation begins to crumble.
The veracity of this fact can be seen in the way that the left treats Cain. “He’s a black man who knows his place” or he needs to “Get off the symbolic crack pipe”. They are trying to demonstrate that he is not an authentic black, his story is an aberration and that his success is not the kind of success that other blacks can aspire to or expect from themselves or their families.
Therefore, his candidacy must be destroyed. It must not be allowed to succeed because if he were to convince even 20% of blacks to vote for him, President Obama and much of the Democratic machine would be toast. A Democrat party without its most reliable constituency would crumble.
At the same time, political insiders on both sides of the isle dislike Cain for a completely different reason. He seeks to upset their Washington metro apple cart. You know, the one that has the highest income level in the United States. The one that has the power to set the rules for the rest of the country.
The Herman Cain candidacy is potentially Armageddon for those people. As a conservative, Cain believes that the government should be limited to doing only those things it is constitutionally empowered to do, rather than all the things politicians and bureaucrats want to do. As such, he would likely clean house. He would likely slash, if not eliminate, major elements of the government bureaucracy, particularly in the areas of education and energy as well as environmental and corporate regulation.
To understand why this scares insiders so much, imagine the impact of his 999 plan. By streamlining and simplifying the tax code, by eliminating most exemptions, he would immediately gut the number of accountants America needs, as well as making tens of thousands of IRS employees redundant. That proposal alone would immediately save Americans’ hundreds of billions of dollars in accounting costs. Thousands of accountants and IRS types would have to find productive jobs elsewhere. Now imagine that same level of efficiency brought to the Departments of Education, Energy, HUD and HHS.
Simply put, Herman Cain is an outsider to the Washington insider cabal. That cabal, which includes bureaucrats, lobbyists and politicians of both parties, is shaking in its boots. The prospect of a businessman not accustomed to the built in inefficiencies, the go along to get along mentality that permeates Washington, scares those people to death. Unfortunately for them, Cain worries about the effects of government employees and regulation on the American people and the American economy, not the other way around.
His goal is to remove the yoke of government from the backs of the American entrepreneur so that prosperity can return. If you are a lobbying firm who collects hundreds of millions of dollars a year to influence government, you don’t want to see someone elected who might sink your ship. Same thing if you’re a bureaucrat living in Mclean Virginia and making $150,000 a year with rock solid job security. Same if you are a politician who sits on a committee that gives you power over 10% of the American economy. If you are part of that yoke on the neck of the American people, you don’t want to see Cain get elected and would do whatever is necessary to make it not so.
Herman Cain’s unorthodox candidacy and his outsider perspective presents a sufficient threat to both Democrats and Washington insiders that they will do whatever they must in order to get him out of the race. For the Democrats it’s their party, for the insiders it’s their power and privilege and for both it’s their basic survival. At the root, there are literally trillions of dollars are at stake. Every day we read about the most heinous of crimes being committed for far lower stakes, so why then does it seem so farfetched that this just might be an orchestrated hit job to sink the Cain campaign? Maybe it’s not so farfetched after all.
Instead of credible, demonstrably true charges, what we have is a handful of women coming out with specifically non specific accusations of “sexual harassment”. And the problem is, there seems to be no way for Mr. Cain to escape the attacks. It’s like being asked “Mr. Smith, are you still beating your wife?” and you respond that you’ve never laid a hand on her but the headline the next day shouts “Mr. Smith says he’s no longer beating his wife.” The accusation alone is enough. Enabled by a pliant media, these women have been able to detour, if not derail, a promising political campaign.
Who might benefit from this? Primarily two groups: The left (read Democrats) and Washington insiders of both parties.
The left does not like Herman Cain for two reasons. The first is because he’s an unabashed believer in American exceptionalism. At the end of the day he believes that a man in America has the opportunity to succeed through his own efforts, regardless of their background or demographic characteristics. The second reason they don’t like him is that he has the temerity to believe those things while being black.
That latter bit is what really makes the Democrats nervous. The fact that Herman Cain is a black conservative who is a vociferous opponent of the entitlement state creates a potential fatal crack in one of their core constituencies, blacks. Blacks make up about 13% of the population and they vote Democrat in excess of 90% of the time – 96% of blacks voted for Barack Obama. To put that in perspective, if a candidate needs 50% of the total vote to claim victory and they automatically get 90% of the black vote, they already have 11% of their 50% right there. That means that of the remaining 87% of the population, said candidate need only attract 39% of the vote. That’s a pretty good deal for Democrats.
Herman Cain puts that math in jeopardy. By demonstrating that a black man can succeed in the United States without depending on affirmative action, without being a ward of the state, without being an agitator for redistribution of wealth, he shatters the myth propagated by the left that blacks are victims and cannot succeed without government help. Once they recognize that, that 90% Democratic foundation begins to crumble.

Therefore, his candidacy must be destroyed. It must not be allowed to succeed because if he were to convince even 20% of blacks to vote for him, President Obama and much of the Democratic machine would be toast. A Democrat party without its most reliable constituency would crumble.
At the same time, political insiders on both sides of the isle dislike Cain for a completely different reason. He seeks to upset their Washington metro apple cart. You know, the one that has the highest income level in the United States. The one that has the power to set the rules for the rest of the country.
The Herman Cain candidacy is potentially Armageddon for those people. As a conservative, Cain believes that the government should be limited to doing only those things it is constitutionally empowered to do, rather than all the things politicians and bureaucrats want to do. As such, he would likely clean house. He would likely slash, if not eliminate, major elements of the government bureaucracy, particularly in the areas of education and energy as well as environmental and corporate regulation.
To understand why this scares insiders so much, imagine the impact of his 999 plan. By streamlining and simplifying the tax code, by eliminating most exemptions, he would immediately gut the number of accountants America needs, as well as making tens of thousands of IRS employees redundant. That proposal alone would immediately save Americans’ hundreds of billions of dollars in accounting costs. Thousands of accountants and IRS types would have to find productive jobs elsewhere. Now imagine that same level of efficiency brought to the Departments of Education, Energy, HUD and HHS.
Simply put, Herman Cain is an outsider to the Washington insider cabal. That cabal, which includes bureaucrats, lobbyists and politicians of both parties, is shaking in its boots. The prospect of a businessman not accustomed to the built in inefficiencies, the go along to get along mentality that permeates Washington, scares those people to death. Unfortunately for them, Cain worries about the effects of government employees and regulation on the American people and the American economy, not the other way around.

Herman Cain’s unorthodox candidacy and his outsider perspective presents a sufficient threat to both Democrats and Washington insiders that they will do whatever they must in order to get him out of the race. For the Democrats it’s their party, for the insiders it’s their power and privilege and for both it’s their basic survival. At the root, there are literally trillions of dollars are at stake. Every day we read about the most heinous of crimes being committed for far lower stakes, so why then does it seem so farfetched that this just might be an orchestrated hit job to sink the Cain campaign? Maybe it’s not so farfetched after all.
Monday, October 17, 2011
Poor people will prosper under 999 - and so will the rest of the country.
Herman Cain’s 9-9-9 tax plan is imperfect, but it’s by far the best plan on the table. As such, criticism of 9-9-9 comes from all quarters.
The left is unhappy that its egalitarian nature is the opposite of the progressive tax structure we’ve had for a century. I suspect however that it is not simple tax policy that drives their antipathy, it’s revenge. You don’t have to listen very long to one of President Obama’s “fair share” speeches to recognize it. Or watch much of the “Occupy your city here” demonstrations going on around the country to see the envy. The notion of those fat cat Wall Street bankers paying the same tax rate as a single mother of three who works two jobs to support her children is simply unacceptable.
The other main criticism from the left is that poor will pay more taxes than they do now while that rich will pay less. That is simply not true. Let’s imagine the most difficult of possible situations, where a family of four has an income of $25,000 a year, all in the form of untaxed government benefits. Let’s assume they spend every dollar they have every year. As it stands today, they would ostensibly pay no taxes.
In reality however if they spend their entire $25,000 income they are actually paying $5,750 in embedded taxes. According to the people over at FairTax.org, 23% of every dollar a consumer spends in the United States is due to federal taxes levied on employees, on corporate profits, in the form of excise taxes, etc. If that is the case, then when that family spends its $25,000, in reality, $5,750 of that is for federal taxes.
Under Herman Cain’s 9-9-9 plan that 23% would go away. Here’s an example: Let’s assume this family goes to the store and buys $100 worth of groceries. Under the current system, $23 of that total represents embedded taxes. If you remove that $23 from the total, then the cost of those groceries without taxes is $77. That 23% of embedded taxes would now become 9% as both profits and employees have a 9% tax rate. Therefore, the price on the shelf of the goods will now reflect the 9% embedded taxes and would cost $84. At the register the 9% sales tax would be added and the final price becomes $91.50. That’s 8.5% less than they would have spent under the current system.
If you expand the $100 to the family’s entire $25,000 income, they would actually end up spending $22,962 rather than their entire $25,000. In this case they actually end the year $2,037 richer than they do under the current system. While prices would not come down the day after 9-9-9 went into effect, competition would bring them down rapidly.
As for a family with an income that actually pays taxes, in almost all circumstances they come out ahead via the 9-9-9 plan. Read Ed Morrissey’s piece over at HotAir.com to compare the numbers with a family of 4 earning $50,000. In the few cases where the family does not come out ahead, they too will pay less in taxes as a result of the lower embedded taxes.
From the right criticism comes in the form of suggesting that it has no chance of ever getting enacted. This is a red herring. If conservatives take the White House and the Senate, it will pass easily. And they won’t need 60 votes to get it done as Harry Reid has decided that the nuclear option is no longer particularly toxic.
A more substantive complaint from the right is the very understandable notion that they don’t want the kleptocrats in Washington to have another tool with which to beat the American taxpayer about the head, i.e. a sales tax that starts out as 9-9-9 could easily become 10-10-10 or 25-25-25. I can certainly appreciate that as our current system started out with a top rate of 7% in 1913 but reached 77% by 1918.
That rate creep danger does exist, but the truth of the matter is that it already does. If the passage of the wholly unconstitutional ObamaCare demonstrates one thing, it’s that Washington thinks there are no limits to its power already. It’s only the Tea Party and a few Republicans who are keeping a sales tax from happening today. Remember Nancy Pelosi proposing the VAT not so long ago? Besides, Cain is proposing that a balanced budget constitutional amendment be passed, and I would recommend that he adds language that requires a 2/3 majority in both houses to increase taxes. As a cherry on top, the 9-9-9 plan would eliminate the ability of politicians to skew the tax code to help their friends or harm their enemies.
At the end of the day, the thing that is most compelling about the 9-9-9 plan is the economic growth it will stimulate. This growth comes from two directions. The first is the $350 billion Americans spend each year simply complying with federal tax regulations.(here and here) That is the equivalent of a boost of 2% to the economy, or a $1,000 per person that Americans would have to spend. The second part of that is the investment and jobs that would be created. Today the United States corporate income tax rate is 35%. If the corporate income tax rate went from 35% to the 9% included in the 9-9-9 plan, you would see trillions of dollars in investment flood into the United States as companies repatriated profits held overseas and sought stronger financial results.
To put that change in perspective, under the current tax structure a company that earns $1 billion in the United States pays $350 million in corporate taxes, leaving the shareholders with a net profit of $650 million. If the 9-9-9 plan were in place those same shareholders would instead enjoy a net income of $910 million, fully $260 million more, or 40% more money in their pockets. The resulting rate would be amongst the lowest in the world and would make the United States an investment magnet for investors and companies from around the world.
Then of course there are jobs. I began this post talking about how the poor would not be negatively impacted by 9-9-9. Actually they will be positively impacted. What is the single most powerful way to turn poor people into middle class taxpayers? More and better paying jobs, of course. With a 9.1% unemployment rate there is little incentive for companies to increase the wages of their employees. There are simply too many people willing to step in and fill the shoes of any disgruntled employee. At an unemployment rate of 4% the dynamic is turned on its head where employees are far better positioned to demand and get wage increases. As economic growth creates millions of jobs and as demand for workers begins to outstrip supply, the value of those employees increases and their compensation follows suit.
At the end of the day 9-9-9 is by far the best plan on the table. It’s easy to understand, it saves Americans money via lower prices, it means more investment, a growing economy, more jobs and higher wages. If Americans really want to return to prosperity, 9-9-9 will get them there. The question is, do they have the courage to finally walk away from incremental change and do something bold?

The other main criticism from the left is that poor will pay more taxes than they do now while that rich will pay less. That is simply not true. Let’s imagine the most difficult of possible situations, where a family of four has an income of $25,000 a year, all in the form of untaxed government benefits. Let’s assume they spend every dollar they have every year. As it stands today, they would ostensibly pay no taxes.
In reality however if they spend their entire $25,000 income they are actually paying $5,750 in embedded taxes. According to the people over at FairTax.org, 23% of every dollar a consumer spends in the United States is due to federal taxes levied on employees, on corporate profits, in the form of excise taxes, etc. If that is the case, then when that family spends its $25,000, in reality, $5,750 of that is for federal taxes.
Under Herman Cain’s 9-9-9 plan that 23% would go away. Here’s an example: Let’s assume this family goes to the store and buys $100 worth of groceries. Under the current system, $23 of that total represents embedded taxes. If you remove that $23 from the total, then the cost of those groceries without taxes is $77. That 23% of embedded taxes would now become 9% as both profits and employees have a 9% tax rate. Therefore, the price on the shelf of the goods will now reflect the 9% embedded taxes and would cost $84. At the register the 9% sales tax would be added and the final price becomes $91.50. That’s 8.5% less than they would have spent under the current system.
If you expand the $100 to the family’s entire $25,000 income, they would actually end up spending $22,962 rather than their entire $25,000. In this case they actually end the year $2,037 richer than they do under the current system. While prices would not come down the day after 9-9-9 went into effect, competition would bring them down rapidly.
As for a family with an income that actually pays taxes, in almost all circumstances they come out ahead via the 9-9-9 plan. Read Ed Morrissey’s piece over at HotAir.com to compare the numbers with a family of 4 earning $50,000. In the few cases where the family does not come out ahead, they too will pay less in taxes as a result of the lower embedded taxes.
From the right criticism comes in the form of suggesting that it has no chance of ever getting enacted. This is a red herring. If conservatives take the White House and the Senate, it will pass easily. And they won’t need 60 votes to get it done as Harry Reid has decided that the nuclear option is no longer particularly toxic.
A more substantive complaint from the right is the very understandable notion that they don’t want the kleptocrats in Washington to have another tool with which to beat the American taxpayer about the head, i.e. a sales tax that starts out as 9-9-9 could easily become 10-10-10 or 25-25-25. I can certainly appreciate that as our current system started out with a top rate of 7% in 1913 but reached 77% by 1918.
That rate creep danger does exist, but the truth of the matter is that it already does. If the passage of the wholly unconstitutional ObamaCare demonstrates one thing, it’s that Washington thinks there are no limits to its power already. It’s only the Tea Party and a few Republicans who are keeping a sales tax from happening today. Remember Nancy Pelosi proposing the VAT not so long ago? Besides, Cain is proposing that a balanced budget constitutional amendment be passed, and I would recommend that he adds language that requires a 2/3 majority in both houses to increase taxes. As a cherry on top, the 9-9-9 plan would eliminate the ability of politicians to skew the tax code to help their friends or harm their enemies.
At the end of the day, the thing that is most compelling about the 9-9-9 plan is the economic growth it will stimulate. This growth comes from two directions. The first is the $350 billion Americans spend each year simply complying with federal tax regulations.(here and here) That is the equivalent of a boost of 2% to the economy, or a $1,000 per person that Americans would have to spend. The second part of that is the investment and jobs that would be created. Today the United States corporate income tax rate is 35%. If the corporate income tax rate went from 35% to the 9% included in the 9-9-9 plan, you would see trillions of dollars in investment flood into the United States as companies repatriated profits held overseas and sought stronger financial results.
To put that change in perspective, under the current tax structure a company that earns $1 billion in the United States pays $350 million in corporate taxes, leaving the shareholders with a net profit of $650 million. If the 9-9-9 plan were in place those same shareholders would instead enjoy a net income of $910 million, fully $260 million more, or 40% more money in their pockets. The resulting rate would be amongst the lowest in the world and would make the United States an investment magnet for investors and companies from around the world.
Then of course there are jobs. I began this post talking about how the poor would not be negatively impacted by 9-9-9. Actually they will be positively impacted. What is the single most powerful way to turn poor people into middle class taxpayers? More and better paying jobs, of course. With a 9.1% unemployment rate there is little incentive for companies to increase the wages of their employees. There are simply too many people willing to step in and fill the shoes of any disgruntled employee. At an unemployment rate of 4% the dynamic is turned on its head where employees are far better positioned to demand and get wage increases. As economic growth creates millions of jobs and as demand for workers begins to outstrip supply, the value of those employees increases and their compensation follows suit.
At the end of the day 9-9-9 is by far the best plan on the table. It’s easy to understand, it saves Americans money via lower prices, it means more investment, a growing economy, more jobs and higher wages. If Americans really want to return to prosperity, 9-9-9 will get them there. The question is, do they have the courage to finally walk away from incremental change and do something bold?
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