Instead of 9-9-9, How About 0-0-0?

Instead of 9-9-9, How About 0-0-0?
Posted by Laurence Vance on October 2, 2011 08:02 AM

Herman Cain's 9-9-9 tax plan has a big problem. It still gives the government too much money to spend (actually, just as much as now). Here someone proposes instead a 0-0-0 plan, which libertarians will like much better. I should point out that Ron Paul has for years advocated eliminating the income tax and replacing it with nothing and forcing Congress to cut spending to match what little revenue still comes in. He just doesn't have a goofy Republican plan. His plan is called "freedom to keep the fruits of your labor."

xxx

The 0-0-0 Plan
By David Hanson
September 30, 2011

When Herman Cain was announced as the next speaker at the Florida Presidency V Straw Poll last week, the crowd thundered in ovation. I leaned over to an audience member, "He's going to place in the top three." Cain went on to capture first in the contest. Since then, he has enjoyed a rather nice media surge as Republicans take a second look at a candidate once thought to be destined for neglect.

One cannot deny Cain's impressive leadership skills. His interview and debate performances have revealed a cunning marketing mind adept at using conviction and wit to remain competitive in the presidential contest. Cain's personal narrative of overcoming adversity, whether financial or medical, through sheer grit is compelling. Many are beginning to rightly admire his pragmatic problem-solver approach to difficult political issues.

Indeed, there is much to like about the man. However, his campaign centerpiece, the memorable 9-9-9 Plan, is not the solution to America's economic woes.

Cain's proposal is quite specific:

Replace the current federal tax code with a 9 percent personal income tax, a 9 percent national sales tax and a 9 percent corporate income tax.

Simple enough; 9-9-9 might actually be a step up from our current situation. But, then again, we're talking about the federal government. Its main problem is spending. Cain's 9-9-9 Plan would sustain the same general level of federal revenue. It would do nothing to address the national debt crisis we face. For example, the plan does nothing to curb the hidden inflation the Federal Reserve System causes when it creates money to fund new programs.

The plan has more problems. A national sales tax is the last thing the country needs with ever-increasing rates of inflation. With the price of food, energy and other needs rising, a sales tax would compound the financial burden of millions of poor and middle-class Americans.

Given historical precedent of federal tax policies, there is a very real chance that a 9 percent sales tax would rise rapidly to sustain future Washington spending binges. Remember, the federal income tax rate was originally set at a maximum rate of 7 percent. Expecting Congress to jealously guard any hike in sales or income taxes is just naïve.

So, while I admire Cain's attempted solution, I will offer one better. I call it …

The 0-0-0 Plan.

It goes something like this.

Federal personal income tax: None

National sales tax: None

Corporate income tax: None

Say it with me. None, None, None!

Naysayers will likely note that without those taxes, there will not be enough revenue to cover current spending. That's precisely the point. As Cain frequently notes, the first step in problem-solving is to identify the target. The target must be our crippling national debt.

Tax tinkering that enables current spending will do nothing to prevent the ever-inflating dollar bubble. Once the bubble pops, paychecks and entitlements will not be worth the paper on which they're printed. Americans will face an unprecedented level of economic misery. To prevent this crisis, we must dramatically reduce foreign and domestic spending.

By abolishing personal and corporate income taxes, job creation would explode. People prosper when they enjoy the full fruits of their labor.

Under my 0-0-0 Plan, Social Security and Medicare taxes would remain but, more importantly, the programs could be salvaged with savings from foreign spending cuts. Other programs can be funded by excise taxes, fees and tariffs already available.

If there is still a federal shortfall, any additional taxes should be levied against the states. Let's take the tax burden off individuals and place it on governments for once. I think a federal tax of 10-20 percent on all state budgets should more than suffice. Based on current state budgets, such a tax could generate hundreds of billions of additional federal revenue. Of course, state legislatures will try to increase their own taxes to shift the burden back to individuals. Yet constituents can keep local assemblies much more accountable than a distant federal government.

Now, I am under no illusions that such sweeping reforms will be easy to execute. Washington will kick and scream all the way. We'll experience acute pain, too. But the consequences of maintaining current spending levels will create deeper, longer-lasting poverty for all of us.

To accomplish the 0-0-0 Plan, we need masters of both communication and economics. Cain demonstrates the first but not the latter. Yet his and other recent figures' successes illustrate: America can embrace dramatic change when prompted by charismatic leaders.

David Hanson, 22, is a writer and public speaker. He is the founder of Hanson & Associates, a political communications firm in Florida. He is a fellow of the Moving Picture Institute. Contact him at david@hansonwins.com.

Read more: The 0-0-0 Plan http://www.wnd.com/index.php?fa=PAGE.view&pageId=350621#ixzz1Zeh3Df6Q


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