Thursday, October 13, 2011

CAIN AND HIS 999 TAX PLAN.

Businessman Herman Cain's 999 tax plan is just wordy; it does not resolve the nation's fiscal woes, and it looks so simple, but it is costly from the point of view that every price must go up by nine percent in its implementation.

He will rattle about it as much as he likes, but that is all there is to it in practical terms; mere words for, probably, entertainment and not for serious politics.

The plan will also be one, loaded against the middle class and working people, because the less money a worker earns, the more taxes he or she will pay, as many financial and tax analysts are predicting.

In other words, the people that, for example, the Wall Street demonstrations around the country are about, the CEOs and the fat cats, will be benefiting more from the plan, for the basic reason that they will be paying only a quarter, or thereabouts, of what they presently pay.

In the case of an executive, who earns, say $250,000 a year, the flat rate of 9% will only be $22,500, instead of the present rate of 34% against the same salary, which is $85,000. The difference will be huge and in his or her (executive's) favor.

On the other hand, a worker earning $50,000 dollars and paying 9%, will incur a tax burden of $4500 in place of $3500, and that will put him or her overboard by $1000 dollars, right there and then.

The math does not compute with the tax rates Cain is proposing, particularly, for the middle class and working people, as in addition to individual personal tax, they will be saddled with a mandatory national sales tax of another 9% against the rest of their already small incomes.

Now, a person earning less than $50,000 will even be severely affected, as taxes will drain his or her spending power to purchase the same consumer items as those who earn more, in the form of bigger paychecks. The percentage in taxes, of his or her earnings, will go up quite considerably, from 7% presently to 18%.

Mr. Cains own associates are calling his 999 tax plan by several derogatory names, and making fun that it sounds like the price of a pizza pie; or that if it is turned upside down, "....I think the devil is in the details,", his colleague Rep. Michele Bachmann has quipped, during the most recent GOP debate of the party's presidential candidates.

In a nutshell, Cain has never had much, and repeat "much", consideration for the average worker, working with him during his tenure as a CEO in the pizza business or in any of the other service industry establishments that he has been involved in.

He was, and still is, thinking about the high ranking personnel, in every case, to reduce their taxes and not that of the person, who has the obligation of mixing the tomato paste or the dough, of which the end product, a slice of pizza, made the companies the profits that went to pay the fat salaries for himself and his executive friends.

He may have been poor before, as almost all African Americans have; but the word "poverty" has ceased to cross his mind, after he is able to achieve his high echelon status in the business world.

Otherwise, he will not make the now famous or infamous, "If you don't have a job, or you are not rich, blame yourself" comment.

He has succeeded in challenging his front-runner presidential mates, Gov. Romney and Gov. Perry, and he has been able to overtake them; but it would be very hard to surpass them if he continued to plug his 999 tax plan.

They were going to overshadow him with foreign policy and other intricate political matters that would take a toll out of his motivation to become a candidate; because they, and some of the other candidates, have had experience in governmental affairs, of which he, Cain, has no inkling.

That would put him at a disadvantage, a point that would cause him to lose the enthusiasm he now has, and which was propelling him in his campaign. It (enthusiasm) was helping him tremendously with the Conservative electorate, but it would be no more, after they, Romney, Perry and the others, were done with him.

The 999 tax idea would be out in the cold by the end of next Summer, (forgive the irony), and Cain's campaign would come to a dismal end. His 999 tax plan would then be history.

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