The Herman Cain campaign released the second part to his 9-9-9 plan on Thursday evening. Mr. Cain’s plan would scrap the entire current tax system and establish a 9 percent corporate tax rate, 9 percent income tax, and introduce a 9 percent federal sales tax. Apparently, this second part to the 9 -9 -9 plan is Mr. Cain’s response to those who criticized Cain for wanting to raise taxes on lower income Americans:
As part of his bold vision for the American economy, Presidential candidate Herman Cain unveiled his Opportunity Zone Plan, designed to create an environment in designated communities that allows production to drive the economy, not spending; which encourages risk-taking to drive growth, speaking Friday outside of Michigan Central Station in Detroit, Michigan. “Opportunity Zones are fundamentally different from other attempts by some public policy makers in the 1990s,” said Cain, “as we are trying to energize local small business and indigenous start-ups to participate in these Opportunity Zones.”
Addressing recent questions about the “9-9-9 Plan”, Cain said, “We carved out a substantial amount from the aggregate “9-9-9 Plan” tax base, enough to exempt those in poverty, and we will work with Congress to best apply these in a way to break the “poverty trap” and replace it with positive incentives that encourage people to work and take risks in this economy.”
Mr. Cain’s Opportunity Zone Plan has three key principles; First, empower Americans to achieve economic dreams; Second, incentivize Americans to work, invest, and take responsibility for their behavior; and Third, promote widespread equality of economic opportunity.”
Mr. Cain explained: “Opportunity Zones in conjunction with the ‘9-9-9 Plan’ will turn the whole country into one giant Opportunity Zone. Some of the most attractive features will be zero capital gains tax, immediate expensing of business equipment, and no payroll taxes are “factory installed” in the ‘999 Plan’ for the whole country to benefit.”
Opportunity Zones will allow employers in Zones to make deductions for payroll (as opposed to income) and allow deductions for those living and working in the Zone. The Zones will provide relief and reward those already struggling in the Zone and likely to lead to economic renewal.