Herman Cain's 9-9-9 tax plan has been all the rage over the last week and it's easy to see why. A big part of the Tea Party base that has favored Cain likes ideas that are short, sweet and to the point. 9-9-9 is an easy sell, it slides of the lips like candy. It's very easy to picture "9-9-9" on a sign at a Tea Party rally. The problem with the plan is that after you get past the catchy name, it all goes downhill. According to a study by the Tax Policy Center, Cain's 9-9-9 tax plan would give every American making more than $1 million a tax cut of around $455,000, while raising taxes on Americans making less than $200,000.
In these economic times, people are struggling. Student loans have skyrocketed, health insurance premiums have gone up and nearly 14 million people are out of work. When someone hears a simple idea that sounds like it could work, it catches their attention. The problem lies in the details of Cain's plan. Over the last three decades, the majority of the wealth in the country has been sucked up to the top 1% while Americans at the bottom have had to struggle to keep their heads above water. While Ronald Reagan cut taxes for the top tax bracket from 70% to 28% in his eight years in office, the wealth made its way to a select few and the wages for the bottom 90% stayed stagnant. The nations debt tripled, the Social Security trust fund was raided and average Americans were left to to pay the bill. As Reagan cut the top tax bracket, he actually raised the tax rate on the lowest income earners. President Bush Sr. followed Reagan into office and uttered the famous words "Read my lips, no new taxes". With the Reagan debt out of control, Bush was forced to raise taxes after promising not to and it cost him his reelection. When President Clinton came into office in 1992, he raised taxes and helped put the country back on its feet.
President Clinton isn't without his own faults in contributing to the wealth gap. Clinton was a big supporter of free trade, most notably signing NAFTA (North American Free Trade Agreement). Though free trade gives businesses the ability to hire cheap labor and sell goods at a low price in the United States, it also contributes to massive job loss for Americans. When President Clinton left office, the US had a budget surplus. With the extra cash on hand, President Bush decided to do what Republicans do best, cut taxes for their rich friends. With the massive Bush tax cuts combined with putting two wars on a credit card and a Medicare Part D plan that was never paid for, the United States fell deep into debt. The big banks on Wall Street were deregulated and given free rein, and with sub prime mortgages that were given out and Wall Street manipulating the financial system, the United States finally had an economic meltdown.
In 2009, President Obama was sworn into office,. To help get the country back on track, he put into effect the American Recovery and Reinvestment Act of 2009, also known as the "stimulus bill",. The bill helped the country avoid a depression and created and saved nearly three million jobs, however with constant obstruction from the Republican party, President Obama has had a hard time turning the economy around. With unemployment at 9%, the United States is stuck in an economic ditch and its wheels are spinning in place. If a man like Herman Cain comes into office and delivers his 9-9-9 tax plan, the corporate takeover of the United States will be completed and Ronald Reagan can smile again.
Comments