999: THE TRUTH – DICK MORRIS TV: LUNCH ALERT!

By Dick Morris on October 14, 2011

Dear Friend,

In this video commentary, I discuss Herman Cain’s 999 Plan. Will 999 really work? Will it be revenue neutral? How will it effect the economy? Is it a real remedy?

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Thanks for watching,

Dick

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Please leave a comment below - I would love to hear what you think! Thanks, Dick
Furthermore, a cooperate income tax does not work well, because of lobbyist securing special privileges and creating favorable tax loop holes.

As simple as it may seem installing a “fair tax.” and eliminating completely the current progressive income tax could change the whole world. The IRS would not totally be done away with but reduced to perhaps 5% to 10% of its current size because it would only oversee the collection of funds from the collector (probably the states since they are already set up to collect sales taxes). The point that makes a fair tax, fair is there can be variables built into it to compensate for the very poor and indigent.

For instance a one page return could be filed stating total income and there could be a graduated scale for taxation. IE: 0 to 20000.00 gets 90% back at the rate of taxation. 20000.00 to 50000.00 50% to 30% refund. Over 50000.00, 0% refund. Consequently, only those making under 50000.00 would even have to file. That is only a blue print suggestion. A starting point if you will.

Many things within our current system are set up to encourage dependence not to motivate to better one’s self and become independent. It seems it depends on who you talk to just how large and out of hand the current tax system has become. It is possible to get estimates from 25000 pages to over a million pages. In any case it is literally impossible to know everything in it. So why should it not be totally scraped and we start over with something that promotes growth and get rid of something that curtails growth.

It is true there are many details to be worked out but if we started working on it in a bipartisan way it could be worked out perhaps in a year. Just think what a difference a year could make! Changing the current tax system may not cure all our ills immediately, but it is a start that could very well take the United States out of a terribly declining period and place it firmly into a growth period like never seen before. Is it not at least worth consideration?

  • roofer40 on October 15, 2011 10:21 am

    Dick Morris – wake up!! Herman Cain is a subterfuge! He is just out to sell his book and increase his fame he is not a serious contender!! Action speak louder than words; 1)how much money has he raised?? 2)Look where he is campaigning – not where the first primaries are taking place!! He has high numbers just like Obama did – white guilt. We are about to be fooled twice – shame on us!~!

  • Albert Chukitus on October 15, 2011 11:21 am

    Mr. Cain might have a catchy phrase with his 9-9-9 but reality will set in for people in states which have a high sales tax in existence. For example, in Washington State, we pay about 9.5%. I can’t even begin to imagine paying 18.5% on most items I buy. Talk about a turnoff for voters, car sales, and a lot of other items. Republicans get smart. 9-9-9 is not a good plan and most of all for the low income people.

    Mr. Cain can make all the promises and assumptions he wants but the problem is not the tax code that he would control but the tax codes in the various states. Cain can talk this way now but with major states in deep financial trouble (and still spending) it is a sure bet that the 9-9-9 will be a highly additive (and addictive) new set of taxes. Also, Mr. Cain will be there for 4 or 8 years and let’s assume he does all he says at the federal level. What happens next?

  • GA on October 15, 2011 3:46 pm

    I find it amazing that so many of the negative comments are based in ignorance of distortion of the facts regarding 9-9-9.

    A couple folks complain about a combines 17% sales tax they will pay under a 9-9-9 plan NEVER TAKING INTO ACCOUNT that they will save both FICA and medicare payroll tax of almost 9%.

    C’mon people, THINK< STUDY< LEARN. I am scared when liberal fools vote….I am more afraid when so called conservatives don't think and also vote.

    Read Cain's plan. Are there some unanswered questions there? Sure, but don't you think they will address all of this BEFORE the first vote? Of course they will.

    I said it before…it would be better to jump directly to the FAIR TAX, but if selling people on this first step called 9-9-9 is easier for most to understand and digest then so be it.

    A final note: all the illegals out there, both immigrants and illegal operations like gangs, drug money etc will also be taxed when they buy goods with their ill gotten proceeds, maybe for the first time ever. Also, remember, the sales tax is only on NEW items, so the house or car you buy will be sales tax free unless it is brand new.

  • skynest on October 15, 2011 4:09 pm

    Great analysis Dick! I was a little fuzzy on the plan. You made it all make sense. Its simplicity is one of the reasons it is a winner. No special interest payoffs, 9% tax on all the levels of production (even a bolt maker has to pay income tax), and prices would go lower because of the competition (and headroom created by the lower corp. tax). Any way you look at it, 9% income tax is low, low, low. Just because ~48% of Americans have no skin in the game does not make it right. All Americans could say they are contributing (with the 9% sales tax) and essentially pay less in expenses because of the savings in finished goods.

    What we have now is asinine. What we need is some out of the box thinking. Could 9-9-9 possibly be worse than the corrupt tax system we have now? Let’s close down the IRS as we know it.

  • jorland428 on October 15, 2011 5:28 pm

    To the question of Granny living on Social Security and currently not paying taxes, that’s true in some cases but many Grannies already pay taxes even on their SS income. The people currently on disability income will now have to start paying some taxes with the consumption part of this system; so will the drug dealers, con artists, crooks and robbers. Most of the wealthy currently pay millions in taxes. That is something that would not be collected from a consumption tax alone. Some millionaires and corporations pay zero tax because of loopholes. That should balance that out.
    You cannot look at this and add the 9 % to your state tax your state tax will always be there as well as your federal tax. You have to look at this as a replacement to your federal tax. The 9-9-9 does sound like a fairer tax than the one we have.

  • tsw556 on October 16, 2011 12:55 pm

    Thanks Dick. Helps clarify the plan. I like it. What i like best is it neutralizes Congress – they can no longer pick pet projects to give tax relief, or tax their opposition, or give deductions away for their supporters. Cain should talk about what this transparent plan will do to the Congress – it fixes the broken cronyism.

  • ousaou on October 17, 2011 4:11 am

    Dick, Bravo this 999 tax is taking out the under the table dealing that makes the tax code a growing industry? The sales tax is or is not a VAT. There is a big difference, and Dick you should spend a video lunch to explain. My understanding is that a “simple” sales tax is a percentage added at all sales prices from the origin of the product. In other word a product sold for $10 is sold with the 9% sales tax cost $10.90. The wholesaler add his cut of 15% or $12.54 plus the 9% the sale price is $13.67. This is not what I believe Herman Cain has in mind.
    The VAT is a tax that is add to the added value of the product. The added value is the cost and profit of all the middle men that have handled the products. Going back to my example: the original price is $10.00 plus the 9% the sale price is $10.90, the wholesaler cut is 15% or $1.50 the 9% is on the $1.50 or $0.14. So the sale price is $10.00 + $0.90 + $1.50 + $0.14 or $12.54. So on and so forth. The VAT lower the sales price by $13.67 – $12.54 or $1.13. The amount of taxation is not really as with the straight sales tax.
    Please address this VAT so we all understand what Herman Cain is talking about.

  • Donna on October 17, 2011 11:12 am

    Dick, you say you remember the late 50’s and early 60’s. I remember those years also but i remember interviews done with Ann Dunham-Which if those interviews were to resurface obama would be removed from office. You’re 64? i’m 65- It’s hard to believe you don’t remember the same news that i do. Donna

  • Dick Morris discusses 999 in depth (video) - Political Forum on October 17, 2011 11:04 pm

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