Why Herman Cain Should Not Be President (Pt. 2)

Last time I explained and gave brief opinion on Herman Cain‘s sexual harassment/assault allegations and his conduct in denying them. This time I’ll be talking about his 9-9-9 Plan and why it is not as much of a saviour as it seems.

At face value Herman Cain’s ‘bold’ tax reform plan does, in fact, seem very bold. A flat, easy to understand tax code could simplify our lives. Unfortunately this ‘bold’ 9-9-9 Plan is not as simple as Herman Cain makes it out to be. First of all, it doesn’t raise as much revenue as the current tax plan. Of course I’m sure most Republicans don’t mind that, because taxes are the bane of America’s existence (I always hear ‘let’s get back to Reagan!’, forgetting that Reagan’s tax plans were much more ‘socialist’ than anything on the table now. More on that in another post). Herman Cain does claim, however, that the revenue raised on ‘Nan Nan Nan’ would be the same as now.

Most importantly, Cain claims to be working for the normal Americans when 9-9-9 ends up increasing taxes for the middle and lower classes, while decreasing taxes for the rich. The average middle class household would see an increase in taxes of around $4,300 per year.

Furthermore 9-9-9 is not as business friendly as it seems. In the plan Cain eliminates most deductions which ends up hurting certain businesses. Firstly while Cain eliminates the 6.2% in payroll taxes, he does not exclude income meant for salaries from being taxed with the 9% corporate tax. There already we have a tax increase, which is not something that will stimulate jobs. The service industry which relies on many employees will be hit harder than businesses in which payroll does not make up as much of their spendings.

Not only will middle and lower-income Americans be paying more in taxes, but they will be paying more for their goods with the 9% national sales tax. In some states this could mean their federal plus local sales tax could be up to 18% (in NJ where I’m from, we’d be paying 16%). This will be a huge deterrent from spending too much in the shops.

I urge to you have a look at Stephen Gandal’s more in-depth analysis at his Time blog.

Herman Cain’s 9-9-9 plan will be hitting women the hardest. Although women make up 49% of the labour force, they make up 59% of low-wage workers. Cain seeks to eliminate the Earned Income Tax Credit and the Child Tax Credit, which will disproportionately affect women.

In these past two entries I’ve discussed both Herman Cain’s ruthless, possibly misogynist character as well as his flawed tax code. He does not know how to take criticism, which he will definitely get a lot of in presidency. Is this man ready to become one of the most powerful men in the world? I think not.


Sources:

http://news.yahoo.com/cains-999-plan-bad-business-205300672.html

http://www.tennessean.com/article/20111110/COLUMNIST0150/311100030/Clarence-Page-Worse-Cain-s-tax-plan-bad-working-women

http://curiouscapitalist.blogs.time.com/2011/10/17/the-cain-9-9-9-plan-how-much-would-the-99-pay/

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2 responses to “Why Herman Cain Should Not Be President (Pt. 2)”

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