Vision for Economic Growth
• The natural state of our economy is prosperity. Freedom ensures that. • We must get the government off our backs, out of our pockets and out of our way in order to return to prosperity • Policy uncertainty is killing the economy
Economic Guiding Principles
1. Production drives the economy, not spending • We can not spend our way to prosperity • Government spending IS taxation • Government spending is like taking a bucket of water from the deep end of the pool, pouring it in the shallow end. Then they HOPE that the water level will CHANGE. 2. Risk taking drives growth • Business formation and job creation are dependent on entrepreneurs taking risks • Investors who fund those entrepreneurs likewise take risks 3. Measurements must be dependable • A dollar must always be a dollar just as an hour is always 60 minutes • Sound money is crucial for prosperity
We Must Unite Not Divide
• When one party seeks to spend so that the other party must focus on cutting, we must unite around economic growth • Unite all tax payers, don’t divide them into “income” tax payers vs. “payroll” tax payers • Unite those wanting to eliminate deductions with those seeking lower rates • As a first step, unite the “Flat-Taxers” with the “Fair-Taxers”
Economic Growth is the Key
• This is the worst recovery since the Depression • If the President’s goal was to tie for last place with the previous worst recovery, he failed by 6 million jobs • If we had a typical recovery, 13 million more Americans would be employed today • That means more tax revenue, less government spending and 13 million less people opposed to reasonable spending cuts • The Super Committee must deliver a robust growth solution • America can’t wait for 2012, we need growth NOW.
Phase 1 - Immediate Boost
• As I have outlined, the following represent the minimum for feeding the economic engine and are the “low hanging fruit” offering the most “bang for the buck” • Reduce individual and business income taxes to a maximum 25% • Eliminate taxes on repatriated foreign profits and capital gains • The capital gains tax is a wall separating those with ideas from those with money • Why would we want to wall off those with ideas? That’s where we get business formation, job creation and innovation. • When companies sell products overseas they face double taxation when those profits are brought home (repatriation) to invest in America and pay its workers • Companies don’t ship jobs overseas, Liberals ship capital overseas and the jobs merely follow.
Phase 1 - Enhanced Plan
• Current circumstances call for bolder action • The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two • I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package • The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters
• Achieves the broadest possible tax base along with the lowest possible rate of 9% • It ends the Payroll Tax completely – a permanent holiday! • Business Flat Tax – 9% • Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders • Empowerment Zones will offer additional deductions for payroll employed in the zone • Individual Flat Tax – 9% • Gross income less charitable deductions • Empowerment Zones will offer additional deductions for those living and/or working in the zone • National Sales Tax – 9% • This gets the Fair Tax off the sidelines and into the game.
Phase 2 – The Fair Tax
• Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax. • The Fair Tax would ultimately replace individual and corporate income taxes • It would make it possible to end the IRS as we know it. • The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.
Phase 1 Enhanced Plan – Summary
• Unites all tax payers so we all pay income taxes and no one pays payroll taxes • Provides the least incentive to evade taxes and the fewest opportunities to do so • Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc. • Is fair, neutral, transparent, and efficient • Ends nearly all deductions and special interest favors • Features zero tax on capital gains and repatriated profits • Lowest marginal rates on production • Allows immediate expensing of business investments • Dividend deductibility will help retirees, improve accounting, and moderate stock-option driven executive compensation • Increases capital formation. Capital per worker drives productivity and wage growth • Capital formation will aid capital availability for small businesses • Features a platform to launch properly structured Empowerment Zones to revitalize our inner cities • We all know the Fed has tripled the money supply since 2008. They have been printing money out of thin air to finance the Obama spending machine. While true Fed reform that restores sound money may have to wait for my election, the best thing we can do now is to pursue policies that increase the DEMAND for dollars to help mitigate the risks associated with the increase in the supply. • Pro-growth economic policies equal a strong dollar policy
This is Herman Cain:
• hief Executive Officer and President of THE New Voice, Inc., C a business consulting company, and Head Coach of HITM (Hermanator’s Intelligent Thinkers Movement) • ormer Chairman of Godfather’s Pizza, Inc. after serving as CEO F and President for ten years, 1986 - 1996. In 1988 he bought the company from The Pillsbury Company • Former President of the Tax Leadership Council, the public educational component of Americans for Fair Taxation • ast Chairman of the Board of the National Restaurant Association P (1994-1995), and former full time CEO and President of the Association (1996-1999) • ember of The National Commission on Economic Growth and M Tax Reform (1995), chaired by former Republican Vice-Presidential candidate, Jack Kemp • Former Member, Strategic Air Command (STRATCOM) Citizens Advisory Board, Omaha, Nebraska • Radio Talk Show Host, “The Herman Cain Show”, News Talk 750 WSB – Atlanta, Monday - Friday, 7pm-10pm EST • FOX News Business Commentator and Columnist with NorthStarNational.com, World Net Daily and DailyCaller.com A • t a nationally televised Presidential Town Hall Meeting on Health Care Reform (1994), challenged President Bill Clinton’s health care proposal when he said, “Mr. President, with all due respect, your calculations are incorrect…” • Served on the Boards of Directors of AGCO, Inc., Georgia Chamber of Commerce, Hallmark Cards Inc., Whirlpool, Inc.,and Morehouse College, Atlanta, Georgia • Graduated from Morehouse College with a B.S. in Mathematics in 1967. Earned his Master’s Degree in Computer Science from Purdue University in 1971. Recipient of eight Honorary Doctorate Degrees from Morehouse College, New York City Technical College; Suffolk University, Johnson & Wales University, Creighton University, Purdue University, Tougaloo College and the University of Nebraska • Author of four books, Leadership Is Common Sense (1997), Speak As A Leader (1999), CEO of SELF (October, 2001), and They Think You’re Stupid (May, 2005) A • native and current resident of Atlanta, Georgia. Married for over 40 years with two adult children and three grandchildren
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