In my last article about the GOP event in Florida, I mentioned that the cancer survivor Herman Cain was the only person that made any sense. Then, I promised to do a little research into his 999 economic plan. If you watched the debate in Florida, you know Herman Cain mentioned his plan over and over. However, he never described it.
According to Herman Cain’s own campaign website, his economic plan would potentially take place in multiple phases. What he calls Phase 1 Enhanced Plan is where his 999 plan apparently got its name. During this phase, Herman Cain wants set the income tax at 9% for individuals and 9% for businesses. Then, he want to create a national sales tax of 9%.
Let’s start with the 9% income tax for individuals. This actually does not sound too bad. As of now, many people are not sure how much of their income to give to the federal government. Many end up overpaying and getting an interest free return. Others end up underpaying and having to pay more in a lump sum every spring. So, a set 9% on income tax would eliminate the confusion.
Next is the 9% income tax for businesses. This would eliminate confusion that is similar to that of the individual income taxes. As a small business owner, I would know how much money I need to put back to pay the government.
Finally, the 9% national sales tax makes me feel a little nervous. In the United States we already have both a state and federal income tax. Likewise, most states already have a sales tax. Will a 9% national sales tax replace state sales taxes or be in addition to them? If it replaces state sales taxes, how much are states going to raise income taxes to make up the difference? As a sole proprietor, how much red tape will I ned to go through to get the proper federal permit to collect sales tax without having employees? Honestly, I’d rather sales tax be left up to the states. This uneasiness may be why Herman Cain did not explain his plan at the Florida GOP debate.
Reference: Herman Cain’s 999 website http://www.hermancain.com/999plan