v'ܩ What is Herman Cain’s 9-9-9 Plan?
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What is Herman Cain’s 9-9-9 Plan?

October 14th, 2011

Herman Cain, one of the current frontrunners for the 2012 GOP Presidential nomination, has been running on a plan he calls 9-9-9. It is his idea for reforming the current broken tax system. It is essentially part fair tax and part flat tax.

What is it?

The 9-9-9 plan is a complete tax overhaul of our current tax system. It would get rid of almost all deductions and loopholes for both individuals and corporations. Charitable donations would still be deductible. It would replace the current corporate, income, estate, and capital gains taxes. Instead we would have a flat 9% corporate tax for all businesses, a flat 9% income tax for all individuals, and a 9% national sales tax.

Mr. Cain hopes that this would be phase 1 of a longer term plan to move completely to a fair tax system. Phase 2 would get rid of the corporate and income taxes and raise the rate on the sales tax. I hadn’t actually heard him discuss this part of his strategy yet, but that is what he lays out in his plan on his website.

Can it Pass?

This is the tough part. There are a lot of people that are going to be leery about giving Congress yet another method of taking money from us in the sales tax. There are a lot of people that support a fair tax, but one of the requirements of the fair tax is abolishing the income tax. Adding a sales tax while still having an income tax is a little bit scary. Who’s to say his 9-9-9 plan doesn’t become 19-19-19 in few years under a different administration. I’m slightly concerned about giving another revenue stream without getting rid of the others.

Is it a Good Idea?

It might be. I would be in favor of going to a fair tax, the only question is can it be done. Maybe it makes sense to give it a shot. It would be hard to be much worse than our current tax code. I still haven’t decided who I’m going to vote for in the primaries, and I think Cain is still a bit naive, but his plan is at least bold and different. It merits consideration at the very least.

Author: Derek Clark Categories: 2012 Election Tags:
  1. Jeffrey
    October 15th, 2011 at 12:48 | #1

    Why it won’t become a 19-19-19 plan.

    It’s simple. With today’s watch-dog websites, any attempt to raise the tax would cause a major backlash. Why? It is easy to follow. Raising it from 9% to 12% would affect everyone. thus, Congress can’t hide it any longer. The class warfare route won’t work since it is a flat tax. There are no loopholes for Congress to exploit. Creating some would also cause a backlash.

  2. Jeffrey
    October 15th, 2011 at 12:50 | #2

    At some point keeping a great tax system great is the responsibility of the people. We can no longer expect Congress to do the right thing.

  3. Linda
    October 17th, 2011 at 16:31 | #3

    I agree Jeffrey, we have to stop looking to the elected officials to do the right thing. That’s how we’ve gotten ourselves into this mess. Apathy cannot be America’s choice anymore. Any tax reform, no matter who or which side presents it, will always be at the mercy of future legislatures. The people, when informed and educated, understand the issues we face.

    Herman Cain talks about bold solutions and I agree with him, his plan is bold but what I think is even more important, simple! We need to K.I.S.S government bureaucracy.

  4. Rick
    November 27th, 2011 at 20:43 | #4

    9-9-9 great idea but when they get finished writing the tax laws for these taxes they will be so complicated it won’t be funny…. I agree with Linda we need K.I.S.S when it comes to government and taxes!!!