First, there is his 9-9-9 plan. Logically speaking, since lower income families use more of their income for purchases, in the end that means lower income families will actually have a higher tax rate than the rich. Just as an extreme example, if a family spends 100% of their income, then they will end up being taxed 18%. Let’s say a wealthy person only spends 10% of their income on purchases. They would only be taxed 9.9% of their income. This is the exact opposite of our current tax codes which utilize the logic that those with lower income need tax breaks and those with higher income can afford to help offset the tax breaks given to lower income.
From the analysis ABC News did, they found Cain’s plan would end up costing a family earning $50,000 an additional $2,725/year. How many families earning $50,000 year can afford to pay an extra $200 per month? The analysis did say that since corporations would be saving an average of $4,000 per employee and per Cain, corporations could pass that savings onto the employee… Riiiight, what world does Cain live in? ABC video is here.
Since his original plan also would tax food, something which most states exempt today, this would again be a bigger impact to lower income than higher income families. When it was brought up that most people would end up paying more under Cain’s plan, he “tweaked” his plan. I haven’t paid attention to the latest details.
Since Cain is the one who said about Occupy Wall Street: “Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself!”, it’s obvious he has no compassion for lower income people or those who are struggling in this economy.
And if he is going to make an analogy that his popularity is not “flavor of the week”, but Haagen Dazs black walnut… He ought to make sure the flavor he picks is not one which was discontinued by Haagen Dazs two years ago. (The video is available here.)
Secondly, a flat tax anyway will not cure our economic problems. We have a deficit. The only way a tax solution will help with the deficit is to increase taxes. Thus, his 9-9-9 plan only redistributes who is paying the tax, and it looks like the burden is being added to the lower and middle income families.
Finally, even though he is not a career politician, he sure acts like one. He stated that he was not aware of the financial “settlement” for the sexual harassment charges. Later, he admitted to knowing about the “agreement”, but not a “settlement”, saying “The difference between settlement and agreement, it makes a difference to me.” Then he initially stated he hoped that the amount paid did not come out to much, later saying equivalent of 3 months salary, then later 3-6 months salary, but one of the women received equivalent of one year’s salary. ABC covers the discrepancies here.
And his conflicting statements about an “electrified” fence also showed that it’s hard to understand what he is actually saying and what his actual views are.
For a humorous look at the electrified fence position, here’s Stephen Colbert’s view of the story:
And here is a summary from the Daily Show about Cain’s recent campaign efforts to downplay the sexual harassment controversies:
Click on the above images for the videos.
A more updated Daily Show story on Cain’s changing stories is at this link: