Herman Cains 999 plan.
I’ve already gone on record here thinking a 9% sales tax would be the single worst thing to happen that I can remember for small business to have to collect and remit this from all our clients. But I LOVE the fact that Herman Cain is putting something out there! I mean, he is the ONLY one that has actually given us a firm plan of action. This clearly shows that Herman gets it… but just doesn’t get what it’s like to run a business anymore.
Herman Cain maybe thinking like a CEO with a few thousand employees. Yeah, in that scenario, who cares about collecting sales tax. It’s just one more thing to throw in the hopper. But a construction contractor with 100 employees will absolutely hate this new duty.
That pesky guy from Pennsylvania, santa-whatever his name is that hasn’t decided to give up yet, pretty much nailed it at the Bloomberg debate the other night. No one really wants to pay a federal sales tax, no one trusts that the government will keep it at a low rate, and no businesses want to deal with this.
So Herman!!! How about just a 9-9 plan?
Your 9% corporate tax and 9% personal taxes are still complicated. How about you just dump the sales tax portion and dump the optional deductions all together.
Your tax return could read like this:
1. Total Gross Business Revenue: ________________
2. Business tax rate: multiply by .o9__________
3. The total you owe the IRS: _________________
PERIOD. That’s it.
The personal return would be the same way. We wouldn’t have to hire anyone to do our taxes. We’d always know that if we did a 10,000 job, we would owe $900. We would know if we had a salary of $100,000 we would owe $9,000 in personal income tax.
I mean, no one really wants to pay sales tax… You’ve had a good run, but you’re about to run off a cliff into crazy-ville. Plus this whole thing of 3 phases… You’ll only have a little bit of political capital. There’s no way you could get three phases done! You would have to have a 1 and done plan. You have to do it all in one shot or you’ll never have a chance of getting it completed.
So Herman Cain had this accountant in Ohio named Rich Lowrie help him come up with the Herman Cain 999 Plan. Here is a link to their formula for figuring this out:
http://www.scribd.com/doc/68670035/Cain-Analysis
I am by NO WAY an economist or polital. I’m numb to the whole mess at this point, and purely throwing out an idea. This could be an even worse idea for the country than the 9% sales tax thing for all I know. I just know it would absolulutely be horrible to deal with collecting a 9% federal tax and dealing with remitting it to the IRS. Just one more thing we’d have to do each month. It would totally suck to pay 9% national tax on a new truck purchase. I would sure think Chevy and Ford would lobby their way into blocking this whole idea. Or what about Caterpillar? Imagine selling a 300,000 excavator and having to collect 9 more percent. Even worse, he eventually wants 23%. Talk about killing heavy equipment sales. That would be paying 73,000 federal tax to buy an excavator for a road project. The whole thing is just a can of worms.
We’d also have to pay the credit card companies more money because they would all be processing 9% more revenue. I think someone with the time should look into his donors!! Wonder if Visa or Mastercard has given him some money! LOL