DEFENDING 999 – DICK MORRIS TV: LUNCH ALERT!

By Dick Morris on October 20, 2011

Dear Friend,

In this video commentary, I defend Cain’s 999 Plan. The attacks on Cain’s 999 Plan scored in the last GOP debate and Cain did not do a good job of answering them. Get the real answers right here. I lay them all out.

This Dick Morris Lunch Alert! sponsored by FoodCrisisAlert.com. Check out their practical advice – Go Here Now.

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Thanks for watching,

Dick

36 MONTH ECONOMIC PREDICTION: Shocking Truths Revealed

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Please leave a comment below - I would love to hear what you think! Thanks, Dick
ure if it is a good strategy. Cain may not get much support from the independents and unfortunately the ones to elect Obama in 2008 were the independents. We lost a huge majority of their votes. I think that we just need to get wiser and steal votes this year from Obama rather than sticking to a narrow mind of just wanting the most conservative who would get clobbered by Obama.

Romney is conservative enough to the point were he won’t go against our beliefs on abortion and gay marriage. Quite frankly I doubt those issues would ever be brought up in the next few years since the economy is everyone’s concern. The healthcare system needs some fixes and at least Romney knows a lot about healthcare. I doubt he would impose anything close to Obamacare on us. Actually, I don’t doubt, I am SURE of it.

But going back to the point, Romney has popularity even among moderate democrats and independents. Cain should not distance himself from Romney too much or else he distances himself from a crucial group.

  • masondixson on October 22, 2011 2:51 am

    In response to modelerr

    Your assumptions are wrong. The Income tax withholding percentage is 10.9% (for someone making $50,000 per year) not 6%. As the income increases the amount of tax withholding increases.

    In fact the 6% rate is for someone making $20,000.00

    So let us assume the following:

    Current Tax System: Household Income =$50K

    10.9% Income Tax = $54.50K
    6.5% FICA = 16.25K
    2.9% Medicare = 14.50K
    9% state sales tax = 29.86K

    Total Taxes = $11.5K

    Cain 9-9-9 Plan: Household Income =$50K

    9.0% Income Tax = $4.50K
    9.0 % State sales tax = 32.76K
    9.0% National sales tax = 32.76K

    Total Taxes = $11K

    In other words a $500.00 reduction under the 999 plan.If the state sales tax is less then 999 will save even more. If their is no state sales tax then this family would save over $3200.00.

    I think New Hampshire would vote for that. How about you?

  • masondixson on October 22, 2011 3:30 am

    mperoni101

    The mistake you and several other posters are making is you believe that the Congress and the Potus can raise the rates without anyone knowing it.

    However what you fail to realize and or acknowledge is the simplicity and transparency of the plan is why the rates could never be raised without everyone knowing.

    When was the last time any Congress Rep or Dem openly raised tax rate’s on the middle class.

    Never!

    All tax rate hikes were hidden. Buried in thousands of pages and millions of words. This is why a progressive tax system can never be simplified. Reagan did it and look what happened his tax reform left the door open for rate increases because it was a progressive system. John Q Public only knew the rich were getting their rates increased. By the time the middle classes found out it was too late. The bracket creep struck again and now we have dozens of rates. Most people have no idea what their rate is.

    But start from scratch with a simple transparent plan like 999 and rates will not be able to be raised with bracket creep or thousands of pages of gobbly gook.

    The moment the rates are raised Everyone will know. Besides how can you raise the sales tax on one income group. You can’t. Every one gets the raise including the Dems core supporters.

    Oh and by the way for those of you who think lower income and middle class taxpayers will pay a disproportionate amount of taxes. No one says you have to buy everything new. In fact most lower income earners buy used anyways. Most big ticket items like homes, cars and appliances are purchased used by lower income people. Most homes sold in America are existing (used) so only a small percentage of taxpayers will be affected. Besides most income earners will not be purchasing new mansions, planes and yachts , nor will they be purchasing $250 or more per bottle wine and other exotic luxury items.

    Most low income earners are eligible and probably receive food stamps so their food expenditures are non taxable with the exception of alcohol and tobacco products and most junk foods.

  • masondixson on October 22, 2011 3:48 am

    In response to saralee on October 20, 2011 8:50 pm

    GA,

    “Manufacturers or businesses will still have to be a 9% sales tax on all materials required to create their product and there will also be a 9% sales tax added to the whole sale price. The vendor who purchases the product would also attach a 9% national sales tax to the consumer.”

    This is not true. The plan calls for a national sales tax not a VAT ( value added tax). Apparently you do not know the difference and people like Michell Bachman are being dishonest in representing it as a VAT.

    A sales tax is only charged one time. Period. At the retail end of a transaction. Manufactures are exempt from paying and from charging sales tax on products they buy and produce to sell to a wholesaler, distributor or retailer.

    A VAT is a tax charged at each stage of production up to and including the retail sale.

    The 999 plan has a sales tax not a VAT.

    Michelle Bachman says she is a tax attorney. If that is true and she doesn’t know the difference between a sales tax and a VAT then she had a lot of FOOLS as clients. In fact if I was one of her clients I would sue her for incompetence.

  • mperoni101 on October 22, 2011 11:27 am

    If Obama had his way, people making $200k a year, and I do consider that middle class, would have had their taxes raised.

    Just now you had Cain in Detroit saying that he would change his 9-9-9 plan to avoid raising taxes on the lower class. He HAD to say that and he HAS to make that change because no one would even consider passing his original idea in the first place. It also goes to show that Cain KNEW about this flaw but didn’t do anything about it until it was exposed by others. I kind of cringe at that.

    As for you saying that the lower and middle classes don’t have to pay taxes on new items, why deny them of that liberty, though? EVen if there is a majority that buy used items, it still means that a number of Americans still buy new items. We need to spur growth in this country on new items, not used ones. That is a partial reason, out of many, as to why our economy’s growth rate is very low. So why would you deny them of that anyway?

    Why not just take the current tax codes and increase taxes on the wealthy by 5%, although decreasing the capital gains tax by large chunk, and for the other brackets you lower the taxes?

    Michelle Bachmann IS NOT LYING, and NOT being dishonest. You guys keep accusing people of lying without any evidence.

    http://www.nationalreview.com/agenda/279761/herman-cains-9-9-9-plan-has-vat-plus-sales-tax-josh-barro

    Now, the National Review is like a conservative’s bible to read. If you want to call all of these people liars and dishonest, be my guest, but I certainly won’t believe your accusations.

    Again, Cain’s failure to make this plan more detailed is starting to become an annoyance. It has led people who are blog fanatics to argue for it and against it. Newt laid it out well in the debate saying that there is a lot more to it than just 9-9-9, and Cain nodded to that. Again I repeat, Cain is now changing his plan adding to it the lower class protection from it.

    I like Cain. I have nothing against this guy. But, he loses credibility when saying he would build an electric fence, and he didn’t detract from that statement in the debate. He said it was a joke, but he did not say that he would never do it either. He made a silly statement about the Gitmo detainees. He added to his plan, when asked about it, that Congress would need a 2/3 vote to change it. You say it would never happen, I say you never know what liberals would be willing to do just to pay for their socialist agendas. He now added another rule.

    How many more additions does he need to make to this 9-9-9 plan that was so simple and basic? You can’t criticize Romney’s plan in which………yeah it is lengthy but not hard to understand, but then make your plan short, but very complex to understand and very unfinished.

    (By the way, a little bit off topic but have we seen Perry’s plan yet? Was it not supposed to be done a couple of days after the round table debate?)

    Anyway, I want to see this nonsense on here end with people calling others liars and else.

    And, Bachmann was a successful tax attorney, I really doubt she has a bunch of fools as her clients. I would not demean her success unless you are a big shot tax attorney yourself, which I take it you are not.

  • saralee on October 22, 2011 3:36 pm

    @masondixon

    I had the same interpretation as Michele Bachman and I am from MN so maybe it is a Minnesota thing.Ha Ha. I have also read articles that referenced the business tax the same way that Michele had interpretted the 9% business tax.I really do not think that Michele was knowingly being dishonest,many others have interpreted the 9% business tax the same way.

    How will the government differentiate the raw materials that a business purchases for the final product? I have not seen in writing that the whole sale price will not be taxed? So I guess I will do some more research on this topic.

    I as I stated before am a conservative, so I will regardless of what I find out, would never vote for a national sales tax plus an income tax. I could get behind just a national sales tax with no income tax or just an income tax with no national sales tax but not both together.

    Thanks again for your input.

  • ousaou on October 23, 2011 3:07 am

    Dick, my previous comment was regarding the VAT tax. Thank you for the clarification. Cain’s 999 is not a VAT and is not the standard sales tax that we have today. Cain’s conception tax is a onetime sales tax at the retail or the consumption buyer, of sort. Needless to say that the higher income bracket consume a significant percentage of the consumer goods sold in the US. Therefore the higher income bracket will generate more revenues to the government.
    It needed to be clarified, as Cain’s 999 is what will kick, you know where to the American economic model. The present tax system is totally absurd and only help those with ulterior motives to in helping the campaign donors of friends. These abuses have to stop. This is why Cain makes sense, the only one so far.