Tax Bites & Tasty Morsels

We all know Obama has nothing positive to show for his presidency so far. In fact, his policies have resulted in two major pieces of legislation landing in the Supreme Court: ObamaCare and the Arizona Immigration Law. The decisions coming out of the Court could be extremely damaging to his 2012 re-election campaign.

As a result, he will need to conjure up some really good attacks against his competition to stand a chance of being re-elected. This could be the nastiest campaign in our nation’s history, because Obama is nothing, if not a shrewd community organizer. He knows all too well how to scare up negative sentiment toward anyone, or anything, that stands between him and his socialist agenda. Read Saul Alinsky’s Rules for Radicals, and you’ll see where Obama honed his skills.

And, all of this really makes me wonder who was in charge of bringing down Herman Cain. Where is the substantiation of those many allegations that came out of the blue as soon as Cain’s campaign took off, and disappeared along with his run for the White House? It resembled the frivolous lawsuits filed against Sarah Palin. Who could possibly be behind all of these nasty, negative, and unfounded attacks? It sure makes one wonder.

I really like Herman Cain.
He’s smart.
He’s funny.
He’s genuine.
He’s gracious.
He’s accomplished.
He’s not a career politician.
He’s not afraid to admit it when he doesn’t know the answer.
He’s got a plan to reform our economy-busting behemoth of a tax code.

Americans don’t expect their president to know everything, but they do expect the president to find advisors who do. And, they do expect their president to promote policies to improve the economy.

The current president believes he knows everything, does not listen to advisors, and has no plan to improve the economy. In fact, nearly every policy he’s implemented has been detrimental to the economy.

If we are to recover from the current economic instability and uncertainty, we need to replace him with someone who has actually had a real job, dealing with real issues in the real economy, i.e. the private sector.

Highly acclaimed economist, Art Laffer, wrote in a recent Wall Street Journal column, Cain’s Stimulating ‘9-9-9’ Tax Reform, “Republican presidential candidate Herman Cain’s now famous “9-9-9″ plan is his explicit proposal to right the wrongs of our federal tax code.”

And in response to fears that Cain’s tax plan would be regressive, imposing hardships on the poor, he says, “A static revenue-neutral tax change requires static winners and losers. And this 9-9-9 plan has made certain that even on static terms those below the poverty line will be better off—period.”

Political author and commentator, Dick Morris, who describes the Cain proposal as “breathtaking”, says, “9-9-9 Can Save Our Country“.

He elaborates, “Liberals worry that the tax would shift the burden from the rich to the middle class. No, sir. Americans making $50,000 to $60,000 a year now pay an average of 6 percent of their income in income taxes. But they also pay 6.5 percent in FICA levies and 2.9 percent in Medicare payroll taxes (a total of 15.4 percent). The Cain proposal would replace these with a flat 9 percent, saving them 6.4 percent.”

The Medicare portion for an employee is actually 1.45%, (2.9% for self-employed), but the point is still valid, this group of individuals is already paying close to 14% in combined payroll and federal income tax.

Of course, in addition, the middle class would also have to pay a 9 percent national sales tax, but it would be largely offset by the savings in their payroll taxes.

Morris believes Cain understands what it takes to get our economy moving again … fundamental tax reform! Cain’s plan is revenue neutral until the economy picks up steam, and then the sky’s the limit!

Our only concern then will be to keep the government from spending all of it, so we can whittle down the national debt. Government spending reform must accompany tax reform.

Just like a prize fighter, Uncle Sam should be a lean, mean fighting machine!

Obama’s economic policies have had the undesirable outcome of backfiring, sending economic pessimism into uncharted territory. It is very odd, when a company such as the one where my friend works, is sitting on $9 billion in cash, buying back it’s own corporate stock, and implementing a hiring freeze all at the same time.

Usually, when a company’s balance sheet is in positive territory, it is in a good position to hire, but given the president’s policies and his hostility toward business, it is no wonder companies are backpedaling from making any permanent moves as fast as they possibly can.

The triple threats of increased taxes, ObamaCare mandates, and ever more regulation have companies sitting on cash, or investing it offshore, or simply moving their entire operation to foreign lands, as a result. This, compounded with the lowest interest rates in the world (next to Japan) makes the U.S. a boring place to invest. When you can get a return of 12% from investments in Brazil, it makes the meager half percent return here seem rather silly.

What we are experiencing is our very own, modern-day Atlas Shrugged, and though business moguls are not exactly blowing up oil fields, or moving to some secret enclave in Colorado, they are not investing in the economy, and with good reason. Why subject themselves to the hideous and shortsighted policies of Barack Obama, Harry Reid and the limousine liberals?

Theirs is not a recipe for stimulating the economy, and the sooner they realize it, the better off we will all be!