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The9–9–9 Planwas a tax proposal that was a centerpiece ofHerman Cain's2012 campaignfor theRepublican Party's nomination for president of the United States. It was introduced in August 2011. The plan called for the replacement of all current taxes, such as thepayroll tax,capital gains tax,and theestate tax,with a 9%personal income tax,9% federalsales tax,and a 9%corporate tax.[1][2]

This article is part of a series about
Herman Cain
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History[edit]

In July 2011, an advisor suggested the name "the Optimal tax" for the Cain campaign's tax policy plan. Cain rejected the name, saying, "We're just going to call it what it is: 9–9–9 Plan."[3]

The proposal would introduce a 9% personal income tax, 9% federal sales tax, and 9% corporate tax to replace the country's current tax system. During a debate on October 12, Cain said that his plan would "expand the base", arguing, "When you expand the base, we can arrive at the lowest possible rate, which is 9–9–9."[4]

Summary[edit]

Cain's campaign website summarized the 9–9–9 Plan:

Our current economic crisis calls for bold action to truly stimulate the economy and Renew America back to its greatness. The 9–9–9 Plan gets Washington D.C. out of the business of picking winners and losers, using the tax code to dole out favors, and dividing the country with class warfare. It is fair, simple, transparent and efficient. It taxes everything once and nothing twice. It taxes the broadest possible base at the lowest possible rates. It is neutral with respect to savings and consumption, capital and labor, imports and exports and whether companies pay dividends or retain earnings.[5]

Under his plan, corporations would be able to deduct the costs of goods sold if theinputswere made in the US andcapital expenditures,but not wages, salaries, and benefits to employees.[6]Deductions other than charitable giving would be eliminated. The federal sales tax would not apply to used goods. Cain claimed that the 9–9–9 Plan would lift a $430 billiondead-weight burdenon the economy.[1]

Reception[edit]

Cain supporters with signs celebrating his 9–9–9 plan

Cain spoke about having designated empowerment zones,[7]wherein a lower percentage such as 3% is paid instead. However, some have called Cain's plan moreregressivethan current tax policy at the time, stating that it would raise taxes for most households but cut taxes for those with the highest income.[8][9]

An analysis that the campaign released toBloomberg Newsclaimed that the lowest possible rate for each of the three taxes was 7.3%.[citation needed]Nevertheless, the campaign insisted on poverty grants, which Cain has described as a lower rate in targeted empowerment zones, would necessitate a national tax rate of 9%.[10][4]Paul Krugmanhas criticized the plan, saying that it shifts much of the current tax burden from the rich to the poor.[11]

EconomistArthur Laffer,[3]financial analystLarry Kudlow,[12]and theClub for Growth[13]have spoken favorably of the 9–9–9 Plan. On October 21, Cain told an audience inDetroitthat the plan would be "9–0–9" for the poor, saying, "if you are at or below the poverty level... then you don't pay that middle 9 on your income."[14]

Cain's 9–9–9 Plan attracted skepticism from his fellow candidates at numerous Republican debates.[15]In a debate on October 28, 2011, several of the other contenders for the GOP nomination attacked the plan. CandidateRick Santorumreferenced theTax Policy Center's claim that 84%[16]of Americans would pay more and that the plan would entail "major increases in taxes on people", a charge that Cain denied.[17]FormerTreasuryofficial Gary Robbins stated that the 9–9–9 Plan would expand the GDP by $2 trillion, create 6 million new jobs, increase business investment by 33%, and increase wages by 10%.[1]Also,Arthur Laffer,asupply-sideeconomist, toldHuman Eventsthat "Herman Cain's 9–9–9 plan would be a vast improvement over the current tax system and boom the U.S. economy."[18]

Conversely, other economists did not believe that the 9–9–9 plan would stimulate demand.[19]Bruce Bartlett,an economist under the Reagan andH. W. Bushadministrations has written that Cain's plan "would increase the budget deficit without doing anything to stimulate demand."[19]

The Economistcriticized the 9–9–9 plan, stating that the Cain plan would not result in a reduction in the current corporate tax but instead a newvalue-added tax(VAT). The newspaper also stated that Cain's final tax would be a 30% VAT, as compared to the 15%VAT in the European Union.[20]

According to Cain,

Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher.[1]

9–9–9 the Movie – Slaying the Tax Monster[edit]

During his campaign, Cain released a six-minute movie that explained his 9–9–9 Plan called9–9–9 the Movie – Slaying the Tax Monster.[21]CBS Newsreported:

In '9–9–9 the Movie – Slaying the Tax Monster,' the Cain campaign continues to hammer home the idea that a simple plan is the best one. The 9–9–9 Plan is simple enough to vanquish the ineffective bureaucrats that lurk in the dark crannies of complexity; transparent enough to deter cronyism, and fair enough—fair being the dictionary definition, not the president's class warfare definition—to level the playing field and keep the government from picking winners and losers, the video's narrator says.[22]

Cain's Solutions Revolution[edit]

On January 4, 2012, Cain announced the "Cain's Solutions Revolution". His stated goal was to obtain commitments from members of Congress to support the 9–9–9 Plan before the 2012 elections.[23]He had started a new movement, saying that the "biggest comment I got when I ended my candidacy was to keep 9–9–9 alive. That's what this is about, and I'm going to keep it alive with what I'm calling Cain's Solutions Revolution."[24]To promote the movement, Cain used both a bus tour and a new website.[25]New Yorkmagazine stated that "it's Cain's earnest effort to keep 9–9–9 alive and focus on solutions."[26]On January 20, 2012, Cain spoke atStephen Colbert's "Rock Me Like a Herman Cain: South Cain-Olina Primary Rally".[27]The Huffington Postreported that between 3,000 and 5,000 people were in the crowd at the rally.The Hollywood Reportercalled it "the largest campaign rally so far during this GOP presidential primary season",[28]andThe Philadelphia Inquirersaid that it was "the biggest political rally of the primary season."[27]

9–9–9 Fund[edit]

The 9–9–9 Fund is apolitical action committee(PAC) that was founded by supporters of Herman Cain.[29]The PAC spent more than $468,000 in November 2011 to support Cain's presidential campaign. In December 2011, the 9–9–9 Fund director, Jordan Gehrke, stated that the 9–9–9 Fund had decided not to endorse a candidate for president.[why?][30]TheChristian Postreported that the 9–9–9 Fund may continue to support Cain in the future.[31]

Revolution on the Hill[edit]

On April 16, 2012, Cain held an event namedRevolution on the Hillin Washington, DC, in support of his 9–9–9 tax plan.[32][33]

Supporters[edit]

Notable people who expressed support for the 9–9–9 Plan included:

See also[edit]

References[edit]

  1. ^abcd999 Plan,HermanCain, archived fromthe originalon September 26, 2011,retrievedFebruary 4,2016
  2. ^Grier, Peter (October 12, 2011)."Does the Herman Cain 9–9–9 Tax Plan have a Fatal Flaw?".The Christian Science Monitor.
  3. ^abMcKinnon, John D. (October 13, 2011)."Cain Plan's Reagan-Era Roots".The Wall Street Journal.Archived fromthe originalon August 26, 2017.
  4. ^abSloan, Steven; Rubin, Richard (October 12, 2011)."Cain Reveals 9–9–9 Math With Projection of No Revenue Loss".Bloomberg News.Archived fromthe originalon December 29, 2016.Bloomberg NewsOctober 13, 2011
  5. ^"Herman Cain's 999 Plan".Herman Cain.Archived fromthe originalon September 26, 2011.RetrievedOctober 3,2011.
  6. ^Krugman, Paul (October 15, 2011)."A Bit More About Cain".The New York Times.Archived fromthe originalon September 6, 2017..Paul Krugman. October 15, 2011
  7. ^"Erin Burnett Outfront Interview with Herman Cain".CNN.Archivedfrom the original on October 17, 2011.RetrievedDecember 21,2011.
  8. ^Sahadi, Jeanne (October 18, 2011)."84% would pay more under Cain's 9–9–9 plan".CNN.Archivedfrom the original on February 5, 2015.RetrievedDecember 21,2011.
  9. ^Krugman, Paul (October 18, 2011)."TPC Does Herman Cain".The New York Times.Archived fromthe originalon October 5, 2015.
  10. ^Interview with Herman CainArchivedOctober 17, 2011, at theWayback MachineErin Burnett OutFrontOctober 12, 2011
  11. ^ Krugman, Paul (October 15, 2011)."Cain Unable".Archived fromthe originalon August 26, 2017.
  12. ^abCain the Tax-Code KillerArchivedDecember 19, 2011, at theWayback MachineNational ReviewOctober 14, 2011
  13. ^abSeth McLaughlin,Club for Growth defends Cain's 9–9–9 tax planArchivedDecember 19, 2011, at theWayback MachineWashington TimesInside PoliticsOctober 14, 2011
  14. ^Kenric Ward,Herman Cain's Revised '9–0–9' Tax Plan Raises New DoubtsArchived2011-12-28 at theWayback MachineSunshine State NewsOctober 25, 2011
  15. ^Abcarian, Robin (October 18, 2011)."Vegas debate: GOP rivals jump on Herman Cain's '9–9–9' plan".Los Angeles Times.Archivedfrom the original on October 27, 2011.RetrievedNovember 10,2011.
  16. ^T11-0375 – Herman Cain's "9–9–9" Tax Reform Plan; Baseline: Current Policy; Fully Phased in Distribution of Federal Tax Change by Cash Income PercentileArchivedOctober 21, 2011, at theWayback MachineTax Policy Center,October 18, 2011
  17. ^David Lightman and Steven Thomm,GOP presidential candidates clash in testy debateArchivedOctober 20, 2011, at theWayback MachineMcClatchy News Service,October 19, 2011
  18. ^abCook, Christopher (October 13, 2011)."Art Laffer supports Cain's 9–9–9 plan".Western Free Press.Archivedfrom the original on February 2, 2016.RetrievedJanuary 18,2016.
  19. ^abBartlett, Bruce (October 11, 2011)."Inside the Cain Tax Plan".The New York Times=date=October 11, 2011.Archived fromthe originalon February 27, 2017.
  20. ^"Dial 9–9–9 for nonsense."ArchivedAugust 26, 2017, at theWayback MachineThe Economist,October 17, 2011.
  21. ^Burns, Alexander (October 28, 2011)."Herman Cain's campaign releases '9–9–9: The Movie'".The Politico.Archivedfrom the original on December 31, 2011.RetrievedDecember 21,2011.
  22. ^Madison, Lucy (October 28, 2011)."Cain attempts to revive campaign with 9–9–9: The Movie".CBS News.Archivedfrom the original on December 31, 2011.RetrievedDecember 21,2011.
  23. ^"Herman Cain launches 'Cain's Solutions Revolution' to 'keep 999 alive'".Yahoo News.December 6, 2011.Archivedfrom the original on January 9, 2012.RetrievedJanuary 4,2012.
  24. ^"Herman Cain to launch 9–9–9 bus tour".The Politico.January 5, 2012.Archivedfrom the original on January 5, 2012.RetrievedJanuary 4,2012.
  25. ^"Cain aims to keep 9–9–9 alive".CNN.January 5, 2012.Archivedfrom the original on January 5, 2012.RetrievedJanuary 4,2012.
  26. ^"Herman Cain to Ride Around Promoting 9–9–9 on 'Cain's Solutions Revolution' Bus Tour".New York.January 5, 2012.Archivedfrom the original on January 11, 2012.RetrievedJanuary 4,2012.
  27. ^abKatz, Matt (January 21, 2012)."Colbert channels Cain in big anti-rally".The Philadelphia Inquirer.Archived fromthe originalon January 24, 2012.RetrievedJanuary 21,2012.
  28. ^Lewis, Andy (January 21, 2012)."Stephen Colbert's Rally for Herman Cain Draws Record Crowd in South Carolina".The Hollywood Reporter.Archivedfrom the original on January 23, 2012.RetrievedJanuary 21,2012.
  29. ^Schneider, Craig; Emerson, Bo."Cain's campaign coffers growing".AJC.Archived fromthe originalon December 18, 2011.
  30. ^"Pro-Cain super PAC to hibernate".Politico.Archived fromthe originalon January 10, 2012.
  31. ^Samuel, Stephanie (December 6, 2011)."Cain PAC Reconsiders Its Mission After the CEO Drops Out".Christian Post.Archivedfrom the original on December 7, 2011.RetrievedDecember 21,2011.
  32. ^"Cain rallies for 9–9–9 tax plan, Romney".Archivedfrom the original on April 19, 2012.RetrievedApril 17,2012.
  33. ^"The Herminator Is Back – With His 9–9–9 Plan".Archived fromthe originalon May 2, 2012.RetrievedApril 17,2012.
  34. ^"Craig Miller: In Orlando, Herman Cain endorses U.S. Senate candidate Craig Miller – Orlando Sentinel".Archivedfrom the original on April 13, 2014.RetrievedJanuary 13,2012.
  35. ^"9–9–9: The key to GOP victory – TheHill".January 12, 2012.Archivedfrom the original on January 13, 2012.RetrievedJanuary 13,2012.
  36. ^"Joe the Plumber Is Endorsing... –...no one, though he wishes Herman Cain was still in the race".January 16, 2012.Archivedfrom the original on January 16, 2012.RetrievedJanuary 17,2012.
  37. ^"Herman Cain running for president?".AJC.Archived fromthe originalon December 31, 2010.
  38. ^"Voices unite as Cain backs Zoller".Gainesville Times.Archived fromthe originalon January 23, 2013.
  39. ^"Pete Hoekstra commits to Herman Cain's 9–9–9 tax plan".February 20, 2012.Archivedfrom the original on June 6, 2012.RetrievedFebruary 21,2012.
  40. ^"Rohrer Signs on to 9–9–9".Archivedfrom the original on March 21, 2012.RetrievedMarch 20,2012.
  41. ^"Michigan candidate adopts" 9–9–9 "; 'Army of Davids' grows".Archived fromthe originalon September 13, 2012.RetrievedMarch 24,2012.
  42. ^"Former Republican presidential hopeful Herman Cain is visiting North Dakota on behalf of U.S. Senate candidate Duane Sand".The Jamestown Sun.
  43. ^Tassi, Paul."Herman Cain's 9-9-9 Plan Straight Out of SimCity?".Forbes.RetrievedDecember 4,2020.

External links[edit]

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