Herman Cain is enjoying lots of success after his victory in the Florida Straw Poll. Recent polls put Cain into second place behind Mitt Romney, and not by much. What does recent political success and notoriety get a presidential candidate? He gets center stage at the next Republican debate and he gets front-runner attacks. Former Sen. Rick Santorum steps into the batter box to take his swings.
One of the reasons Herman Cain's popularity is soaring is his 9-9-9 plan. The plan calls for a 9% flat tax on income, a 9% national sales tax, and a 9% corporate tax. The simplistic plan and Cain's so-called straight talk has garnered a new following and a jump in the polls.
Rick Santorum is so low in the polls he doesn't register much. He is seen as the ultra-conservative and is known for his stance against abortion and gay marriage. His new plan is to attack Cain to see if he gains any traction and a bump in the polls. During a recent stop Santorum unveiled his own tax plan. "I've got a better plan. It's the zero-zero-zero plan," Santorum said.
The Santorum plan calls for zero taxes on overseas corporate funds brought back to the United States, zero taxes on manufacturing, and zero Obama regulations. "Zero-zero-zero is better than 9-9-9," he said.
Both plans are overly simplistic and seem to be a catch phrase each candidate can use to score points and create sound bytes. Both plans need more development to become feasible but the Santorum plan is ridiculous. Almost every Republican member of congress and presidential candidate calls for repatriation of corporate funds held overseas. Tax revenue is how the country operates. Not collecting taxes from manufacturing does not help the country.
While in New Hampshire, Santorum said of Cain's plan, "Herman Cain now wants to impose a 9% sales tax, not just on New Hampshire but on every state in the country. I don't think giving the federal government a new tax is tax reform. I think it's going to be punitive to a lot of people."
Herman Cain's plan also has flaws. Collecting everyone 9% puts an undue burden on the middle and lower class. A 9% tax rate for those earning under $50,000 will have an affect the upper middle and upper class won't experience. For example, a worker earning $30,000 a year, under Cain's plan, pays $2,700 in taxes, leaving $27,300 to live on. A worker earning $100,000 pays $9,000 in taxes, leaving $91,0000 to live on. Also, the worker making $100,000 sees a tax savings around $19,000 while the worker earning $30,000 only realizes a $1,800 tax savings, comparing Cain's plan and the 2010 tax table. The worker who needs more of his or her income loses out.
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