Republican presidential hopeful Herman Cain’s popularity in numerous polls is increasing daily, and while the founder and former CEO of Godfather’s Pizza may portray himself as a principled conservative, an analysis of his campaign positions, especially his most controversial flat tax proposal, reveals serious concerns with Cain’s commitment to fiscal conservatism.
Cain’s “9-9-9” tax plan calls for a complete overhaul of the current federal tax code, and it would replace the code, eventually and only temporarily, with three taxes — a 9 percent income tax, a 9 percent business transactions tax, and a 9 percent federal sales tax. On paper, the first two look like cuts, because payroll taxes for Social Security and Medicare (now nearly 15 percent, including corporate contributions) would be repealed. The sales tax would be new, on top of existing state sales taxes.
The most notorious critique of Cain’s 9-9-9 plan came from Minnesota Congresswoman Michele Bachmann in Tuesday’s debate. “One thing I would say is, when you take the 9-9-9 plan and you turn it upside down," Bachmann said, "I think the devil's in the details." The Republican presidential hopeful added that Cain’s plan merely creates another federal tax (in the form of a Value Added Tax), and does little to address the need to reduce the national deficit. “The 9-9-9 plan isn't a jobs plan, it's a tax plan," Bachmann started.
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