View source for 9–9–9 Plan

{{UStaxation}}
The '''9–9–9 Plan,''' a centerpiece of [[Herman Cain]]'s [[Herman Cain presidential campaign, 2012|2012 campaign]] for the [[Republican Party (United States)|Republican Party]]'s nomination for president of the United States, was introduced in August 2011. The 9–9–9 Plan would replace all current taxes (including the [[payroll tax]], [[capital gains tax]], and the [[inheritance tax|estate tax]]) with 9% business transaction tax, 9% [[personal income tax]], and a 9% federal [[sales tax]].<ref>{{citation|publisher = HermanCain.com|title = 999 Plan|url = http://www.hermancain.com/999plan|accessdate = October 3, 2011}}</ref><ref>[http://www.csmonitor.com/USA/Politics/The-Vote/2011/1012/Does-the-Herman-Cain-9-9-9-tax-plan-have-a-fatal-flaw Does the Herman Cain 9–9–9 tax plan have a fatal flaw?] By Peter Grier, csmonitor.com October 12, 2011</ref>
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==History==
In July 2011, an advisor suggested that his campaign's tax policy plan be called "the Optimal Tax", but Cain rejected the name, saying "[w]e're just going to call it what it is: 9–9–9 Plan."<ref name="WSJ-999">John D. McKinnon, [http://online.wsj.com/article/SB10001424052970204774604576629433751126652.html Cain Plan's Reagan-Era Roots] ''[[The Wall Street Journal]]'' October 14, 2011</ref> The plan would replace the current tax code with a 9-percent business transactions tax, a 9-percent personal income tax, and a 9-percent federal sales tax. During a debate on October 12, Cain said his plan "expands the base," arguing that "[w]hen you expand the base, we can arrive at the lowest possible rate, which is 9–9–9."<ref name="Bloomberg-999">Steven Sloan and Richard Rubin, [http://www.bloomberg.com/news/2011-10-12/cain-s-9-9-9-plan-raises-2-5-trillion-in-revenue-campaign-says.html Cain Reveals 9-9-9 Math With Projection of No Revenue Loss] ''[[Bloomberg News]]'' October 13, 2011</ref>

==Summary==
Cain stated the following summary about the 9–9–9 Plan:

<blockquote>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.<ref name=autogenerated3 /></blockquote>

According to Cain, corporations would be able to deduct costs of goods sold (provided the inputs were made in America) and capital expenditures, but not wages, salaries and benefits to employees.<ref>[http://krugman.blogs.nytimes.com/2011/10/15/a-bit-more-about-cain/ A Bit More About Cain]. Paul Krugman. October 15, 2011</ref> Deductions, except charitable giving, would be eliminated. The federal sales tax would not apply to used goods. Cain also said that the 9–9–9 Plan would lift a $430 billion dead-weight burden on the economy.<ref name=autogenerated3>[http://www.hermancain.com/999plan] the 999 plan</ref>

==Reception==
According to the analysis of Howard Gleckman the [[Tax Policy Center]],
<blockquote>When you get right down to it, Cain’s [9–9–9] plan is a 25 percent flat-rate consumption tax — not all that different from the FAIR tax that he says is his ultimate goal. This tax would be paid three times: first on wage income, again at the cash register as a sales tax, and yet again by businesses on their sales minus their cost of goods and services. For tax junkies, the first is a flat tax. The second is a retail sales tax and the third a business transfer tax.  But they are all consumption taxes.<ref>Howard Gleckman, [http://taxvox.taxpolicycenter.org/2011/10/18/cain’s-9-9-9-plan-would-cut-taxes-for-the-rich-raise-taxes-for-almost-everyone-else Cain’s 9–9–9 Plan Would Cut Taxes for the Rich, Raise Taxes for Almost Everyone Else] ''[[Tax Policy Center]]'' October 18, 2011</ref></blockquote>

Although Cain has spoken about having designated 'empowerment zones'<ref>{{cite news| url=http://transcripts.cnn.com/TRANSCRIPTS/1110/13/ebo.01.html | work=CNN | title=CNN.com}}</ref> wherein a lower percentage, such as 3%, is paid instead, apart from this consideration, some have called Cain's plan more [[Regressive tax|regressive]] than current policy, thinking it would raise taxes for most households, but cut them for those with the highest income.<ref>{{cite news| url=http://money.cnn.com/2011/10/18/news/economy/cain_999_plan/?source=cnn_bin | work=CNN | first=Jeanne | last=Sahadi | title=84% would pay more under Cain's 9–9–9 plan | date=October 18, 2011}}</ref><ref>[http://krugman.blogs.nytimes.com/2011/10/18/tpc-does-herman-cain/ TPC Does Herman Cain] October 18, 2011, The Tax Policy Center has the distributional analysis of 9–9–9.</ref>

An analysis released to [[Bloomberg News]] by the campaign claimed that the rate for each of the three taxes could in fact be as low as 7.3%, but "poverty grants" — which Cain has described as a lower rate in targeted "empowerment zones"<ref>[http://transcripts.cnn.com/TRANSCRIPTS/1110/13/ebo.01.html Interview with Herman Cain] ''[[Erin Burnett OutFront]]'' October 12, 2011</ref> — necessitated a national rate of 9%.<ref name="Bloomberg-999"/> [[Paul Krugman]] has criticized the plan, saying it shifts much of the current tax burden from the rich to the poor.<ref>Paul Krugman, [http://krugman.blogs.nytimes.com/2011/10/15/cain-unable/ Cain Unable] ''[[The New York Times]] blogs'' October 15, 2011</ref> [[Arthur Laffer]],<ref name="WSJ-999"/> [[Lawrence Kudlow]],<ref name=autogenerated3>[http://www.nationalreview.com/articles/280200/cain-tax-code-killer-larry-kudlow Cain the Tax-Code Killer] ''[[National Review]]'' October 14, 2011</ref> the [[Club for Growth]],<ref name=autogenerated1>Seth McLaughlin, [http://www.washingtontimes.com/blog/inside-politics/2011/oct/14/club-growth-defends-cains-9-9-9-tax-plan/ Club for Growth defends Cain's 9-9-9 tax plan] ''[[Washington Times]] Inside Politics'' October 14, 2011</ref> and Congressman [[Paul Ryan]]<ref>John Rossomando, [http://dailycaller.com/2011/10/13/paul-ryan-loves-herman-cains-9-9-9-tax-plan/ Paul Ryan 'loves' the idea of Herman Cain's tax plan] October 13, 2011</ref> have spoken favorably of "9–9–9". On October 21, Cain told a crowd in Detroit that the plan would be 9–0–9 for the poor, saying that "if you are at or below the poverty level ... then you don't pay that middle 9 on your income."<ref>Kenric Ward, [http://www.sunshinestatenews.com/story/herman-cains-revised-9-0-9-tax-plan-raises-new-doubts Herman Cain's Revised '9–0–9' Tax Plan Raises New Doubts] ''Sunshine State News'' October 25, 2011</ref> Cain's 9–9–9 plan attracted skepticism from his fellow candidates at numerous Republican debates.<ref name=latimes>{{cite news|last=Abcarian|first=Robin|title=Vegas debate: GOP rivals jump on Herman Cain's '9–9–9' plan|url=http://articles.latimes.com/2011/oct/18/news/la-pn-vegas-debate-open-20111018|accessdate=10 November 2011|newspaper=Los Angeles Times|date=18 October 2011}}</ref>

In an October 18, 2011 debate several of the other contenders for the GOP nomination attacked the plan, with candidate [[Rick Santorum]] referencing the [[Tax Policy Center]]'s claim that 84%<ref>[http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid=3222&DocTypeID=2 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 Percentile] ''[[Tax Policy Center]]'' October 18, 2011</ref> of Americans would pay more and that the plan would entail "major increases in taxes on people," a charge Cain has denied.<ref>David Lightman and Steven Thomm, [http://www.startribune.com/politics/national/132054608.html GOP presidential candidates clash in testy debate] ''[[McClatchy News Service]]'' October 19, 2011</ref>

Some economists support the 9–9–9 Plan. The former Reagan Treasury official Gary Robbins stated that the 9–9–9 Plan will expand the GDP by $2 trillion, create 6 million new jobs, increase business investment by 33%, and increase wages by 10%.<ref>[http://www.hermancain.com/999plan 9–9–9 Plan | Herman Cain for President<!-- Butt generated title -->]</ref>
Also, Art Laffer, a famous [[supply-side]] economist, told ''[[Human Events]]'' that “Herman Cain's 9–9–9 plan would be a vast improvement over the current tax system and boom the U.S. economy.”.<ref name=autogenerated2>[http://www.westernfreepress.com/.../art-laffer-supports-cains-9-9-9-plan/] Art Laffer's quote</ref>

Conversely, other economists feel that the 9–9–9 plan would not stimulate demand.<ref name=autogenerated2>Bartlett, Bruce. [http://economix.blogs.nytimes.com/2011/10/11/inside-the-cain-tax-plan/ "Inside the Cain Tax Plan."] ''The New York Times'', October 11, 2011.</ref> [[Bruce Bartlett]] of the Reagan and George H.W. Bush administrations has written that Cain's plan "would increase the budget deficit without doing anything to stimulate demand".<ref name=autogenerated2 /> 

''[[The Economist]]'' criticized the 9–9–9 Plan stating that the Cain plan is not a reduction in the current corporate tax, but instead a new value added tax (VAT). The article also stated that Cain's final tax would be a 30% VAT, as compared to the 15% [[European Union value added tax]].<ref>[http://www.economist.com/blogs/democracyinamerica/2011/10/herman-cain "Dial 9–9–9 for nonsense."] ''The Economist'', October 17, 2011.</ref> The Cain plan would change the 35% corporate tax to a 9% transaction tax, which would be flat except for payroll deductions for employees in [[empowerment zone]]s.<ref>[http://www.hermancain.com/999plan] 9–9–9 Plan www.hermancain.com</ref>

Cain said the following about the 9% sales tax.
<blockquote>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.<ref>[http://www.hermancain.com/999plan] The 9–9–9 plan</ref></blockquote>

==''9–9–9 the Movie&nbsp;– Slaying the Tax Monster''==
During the campaign, Cain released a six-minute movie that explained his 9–9–9 Plan.<ref name=newone>{{cite news|last=Burns|first=Alexander|title=Herman Cain's campaign releases '9–9–9: The Movie'|url=http://www.politico.com/news/stories/1111/69181.html#ixzz1h8QZfplI|accessdate=21 December 2011|newspaper=[[The Politico]]|date=28 October 2011}}</ref> The [[Daily Caller]] stated that the film "depicts the IRS as a giant robot a la ''[[Wild Wild West]]'' and invites supporters to help 'slay the tax monster.'"<ref name=newtwo>{{cite news|last=Bloom|first=Jordan|title=Cain campaign launches ’9–9–9: The Movie’|url=http://dailycaller.com/2011/11/28/cain-campaign-drops-9-9-9-the-movie-video/#ixzz1h8RgqgTI|accessdate=21 December 2011|newspaper=[[Daily Caller]]|date=28 October 2011}}</ref>

[[CBS News]] reported that "in '9–9–9 the Movie&nbsp;– 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."<ref name=newthree>{{cite news|last=Madison|first=Lucy|title=Cain attempts to revive campaign with 9–9–9: The Movie|url=http://www.cbsnews.com/8301-503544_162-57332218-503544/cain-attempts-to-revive-campaign-with-9-9-9-the-movie/|accessdate=21 December 2011|newspaper=[[CBS News]]|date=28 October 2011}}</ref>

==Cain's Solutions Revolution==
On January 4, 2012, Cain announced the "Cain's Solutions Revolution." Cain's stated goal was to get commitments from members of Congress to support the 9–9–9 Plan before the 2012 elections.<ref name=solutionone>{{cite news|last=|first=|title=Herman Cain launches ‘Cain’s Solutions Revolution’ to ‘keep 999 alive’|url=http://news.yahoo.com/blogs/ticket/herman-cain-launches-cain-solutions-revolution-keep-999-034444411.html|accessdate=4 January 2012 |newspaper=[[Yahoo News]]|date=6 December 2011}}</ref> Cain stated that he started a new movement because 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."<ref name=two999>{{cite news|last=|first=|title=Herman Cain to launch 9–9–9 bus tour|url=http://www.politico.com/news/stories/0112/71098.html#ixzz1iathozL6|accessdate=4 January 2012|newspaper=[[The Politico]]|date=5 January 2012}}</ref> In order to promote this movement, Cain is using both a bus tour and a new website.<ref name=y3999>{{cite news|last=|first=|title=Cain aims to keep 9–9–9 alive|url=http://politicalticker.blogs.cnn.com/2012/01/04/cain-aims-to-keep-9-9-9-alive/|accessdate=4 January 2012|newspaper=CNN|date=5 January 2012}}</ref> [[New York Magazine]] stated that "it's Cain's earnest effort to keep 9–9–9 alive and focus on solutions."<ref name=z4999>{{cite news|last=|first=|title=Herman Cain to Ride Around Promoting 9–9–9 on ‘Cain’s Solutions Revolution’ Bus Tour|url=http://nymag.com/daily/intel/2012/01/herman-cain-announces-bus-tour-promoting-9-9-9.html|accessdate=4 January 2012|newspaper=New York Magazine|date=5 January 2012}}</ref> On January 20, 2012, Cain spoke at [[Stephen Colbert]]'s "Rock Me Like a Herman Cain: South Cain-Olina Primary Rally".<ref name=c12112>{{cite news|last=Katz|first=Matt|title=Colbert channels Cain in big anti-rally|url=http://www.philly.com/philly/news/homepage/137803703.html?cmpid=15585797|accessdate=21 January 2012|newspaper=[[The Philadelphia Inquirer]]|date=21 January 2012}}</ref> The [[Huffington Post]] reported that the crowd size was between 3,000–5,000 people. It has been called "the largest campaign rally so far during this GOP presidential primary season",<ref name=b12112>{{cite news|last=Lewis|first=Andy|title=Stephen Colbert's Rally for Herman Cain Draws Record Crowd in South Carolina|url=http://www.hollywoodreporter.com/news/stephen-colbert-south-carolina-rally-herman-cain-283756|accessdate=21 January 2012|newspaper=[[The Hollywood Reporter]]|date=21 January 2012}}</ref> and "the biggest political rally of the primary season."<ref name=c12112/>

==Supporters==
* [[Craig Miller (CEO)]] – candidate for the [[United States Senate election in Florida, 2012]]<ref>[http://articles.orlandosentinel.com/2012-01-12/news/os-craig-miller-herman-cain-orlando-20120112_1_sales-tax-tax-plan-cain-train Craig Miller: In Orlando, Herman Cain endorses U.S. Senate candidate Craig Miller – Orlando Sentinel<!-- Bot generated title -->]</ref>
* [[Paul Ryan]] – [[U.S. Representative]] for [[Wisconsin's 1st congressional district]] and 2012 Republican Party Vice Presidential Nominee<ref>[http://articles.businessinsider.com/2011-10-13/politics/30274462_1_tax-plan-daily-caller-paul-ryan Paul Ryan 'Loves' Herman Cain's '9–9–9' Tax Plan – Business Insider<!-- Bot generated title -->]</ref>
* [[Art Laffer]] – economist<ref name=autogenerated2 />
* [[Lawrence Kudlow]] – economist<ref name=autogenerated3 />
* the [[Club for Growth]] – a [[527 organization]] focused on taxation and other economic issues<ref name=autogenerated1 />
* [[Dick Morris]] – political consultant<ref>[http://thehill.com/opinion/columnists/dick-morris/203717-9-9-9-the-key-to-gop-victory 9-9-9: The key to GOP victory – TheHill.com<!-- Bot generated title -->]</ref>
* [[Samuel Joseph Wurzelbacher]] – candidate for the [[United States House of Representatives elections in Ohio, 2012]]<ref>[http://www.newser.com/story/137567/joe-the-plumber-is-endorsing.html Joe the Plumber Is Endorsing ... – ...no one, though he wishes Herman Cain was still in the race<!-- Bot generated title -->]</ref>
* [[John Linder]] – former [[U.S. Representative]] for [[Georgia's 7th congressional district]]<ref>[http://www.ajc.com/news/georgia-politics-elections/herman-cain-running-for-789507.html Herman Cain running for president? | ajc.com<!-- Bot generated title -->]</ref>
* [[Martha Zoller]] – columnist, author, and radio personality<ref>[http://www.gainesvilletimes.com/section/154/article/62532/ Voices unite as Cain backs Zoller]</ref>
* [[Pete Hoekstra]] – former Representative for [[Michigan's 2nd congressional district]]<ref>[http://www.mlive.com/news/grand-rapids/index.ssf/2012/02/pete_hoekstra_commits_to_herma.html Pete Hoekstra commits to Herman Cain's 9–9–9 tax plan]</ref>
* [[Sam Rohrer]] – former member of the [[Pennsylvania House of Representatives]]<ref>[http://www.politicspa.com/rohrer-signs-on-to-9-9-9/32939/ Rohrer Signs on to 9–9–9]</ref>
* [[Jack Hoogendyk]] – former member of the [[Michigan House of Representatives]]<ref>[http://www.rivercountryjournal.info/2012/03/15/michigan-candidate-adopts-%E2%80%9C9-9-9%E2%80%9D-%E2%80%98army-of-davids%E2%80%99-grows/ Michigan candidate adopts “9–9–9”; ‘Army of Davids’ grows]</ref>
* [[Duane Sand]] – a [[North Dakota]] candidate for [[U.S. Senate]]<ref>[http://www.jamestownsun.com/event/article/id/157786/group/homepage/ Former Republican presidential hopeful Herman Cain is visiting North Dakota on behalf of U.S. Senate candidate Duane Sand]</ref>

==9–9–9 Fund==
The 9–9–9 Fund is a [[Political Action Committee]] set up by supporters of Herman Cain.<ref>[http://www.ajc.com/news/georgia-politics-elections/cains-campaign-coffers-growing-1210961.html Cain's campaign coffers growing | ajc.com<!-- Bot generated title -->]</ref> The PAC spent more than $468,000 in November supporting 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.<ref>[http://www.politico.com/politicoinfluence/1211/politicoinfluence164.html Pro-Cain super PAC to hibernate – Lobbyists' lobbyist dubs it the 'Gingrich Loophole' – Elections subcommittee to FEC: We're watching you – Tesla revs in-house motor – POLITIC...<!-- Bot generated title -->]</ref> The [[Christian Post]] reported that the 9–9–9 Fund may decide to follow Cain in his upcoming ventures.<ref name=fund>{{cite news|last=Samuel|first=Stephanie|title=Cain PAC Reconsiders Its Mission After the CEO Drops Out|url=http://www.christianpost.com/news/cain-pac-reconsiders-its-mission-after-the-ceo-drops-out-64165/|accessdate=21 December 2011|newspaper=[[Christian Post]]|date=6 December 2011}}</ref>

== Revolution on the Hill ==
{{expand section|date=April 2012}}
On April 16, 2012, Cain held his ''Revolution on the Hill'' event in Washington D.C. in support of his 9–9–9 tax plan.<ref>[http://www.ajc.com/news/georgia-politics-elections/cain-rallies-for-9cain-rallies-for-9-1418764.html Cain rallies for 9–9–9 tax plan, Romney]</ref><ref>[http://www.theblaze.com/blog/2012/04/17/herman-cains-9-9-9-day-may-have-been-small-because-people-were-trying-to-finish-their-taxes/ Herman Cain's 9–9–9 day may have been small because people were ‘trying to finish their taxes!’]</ref><ref>[http://www.ctj.org/taxjusticedigest/archive/2012/04/herminator_returns.php The Herminator Is Back – With His 9–9–9 Plan]</ref>

==See also==
* [[9-9-9 An Army of Davids]]
* [[Herman Cain presidential campaign, 2012]]
* [[Optimal tax]]
* [[Proportional tax]]
* [[Tax reform]]

==References==
{{reflist}}

==External links==
* [http://www.forbes.com/sites/danielfreedman/2011/12/20/cains-9-9-9-man-plotting-hermanator-ii/ Cain's '9-9-9' Man: Plotting Hermanator II]
* [http://thehill.com/opinion/columnists/dick-morris/203717-9-9-9-the-key-to-gop-victory 9-9-9: The key to GOP victory]

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[[Category:Herman Cain]]
[[Category:Tax reform in the United States]]