WHAT'S NEXT FOR CAIN? DICK MORRIS TV: LUNCH ALERT!

By Dick Morris on November 4, 2011

Dear Friend,

In this video commentary, I have an exclusive sit down with Herman Cain. We discuss what’s up next for him. Tune in!

Click Here to give me your thoughts and continue the discussion.

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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
erview with former Bill Clinton Campaign Manager Dick […]

  • dmcadams on November 5, 2011 7:11 am

    Tried to send this to you some time ago. Had no response from either you or Hermon.

    Dick,
    What you forgot in your video on the 9 9 9 plan are those who are retired and are not paying FICA and medicare taxes. In my case, with all deductions, I am paying about the 9% in Federal Income Tax. You are right that the elimination of FICA and Medicare tax offsets the 9% federal sales tax, but, I pay no FICA and no Medicare tax. Therefore the 9 9 9 plan works out to about a 10% tax increase for me. How do you counter the Democrats assertion that the Republicans are helping the “greedy corporations” at the expense of the elderly?

    Dave McAdams
    115 Redbud Drive
    Interlachen, Florida

    386-684-9659

  • mwcordell on November 5, 2011 12:43 pm

    blueglas Let me see if I can explain it.

    Sales Tax…
    It seems you are really concerned about the 9% sales tax. Please understand you are currently paying for ALL the embedded taxes every time you make a purchase. Your take home pay will increase by 7.65% (SSI 6.2% + HI 1.45%) Every company has to match the SSI and HI so they will no longer have to pay that 7.65%. In most businesses payroll is 30 to 50% of their cost. They would easily be able to lower their prices the other 1.35% even if their labor cost was on 18% of their cost. This means with your pay increase and the lower prices the 9% sales tax is a completely covered. There is a good chance prices would drop even further because corporate tax rate would drop from 35% to only 9% allowing companies to further decrease their prices. I hope they just post the prices with national sales tax included. Just like gasoline today. You don’t pay an extra sales tax on gas because it is already in the price.

    Now your income taxes…
    The real test is it better to pay 25% on everything you make with deductions or pay only 9% without deductions. You would have to deductions equal to 64% of your income to equal the 16% tax rate savings. Most taxpayers are nowhere near that level of deductions.

    Now the housing industry…
    First the tax would only be the purchase of a NEW house. The used home market would benefit. I don’t anyone who bought a house to get the tax break. Who would pay $1000 to save $250. Not a good business plan. The price of houses would not go up and more than likely go down in price. Many builders would offer to just pay the tax to sell the house. Even still most homes are financed and would only add $40/month to $100K 30yr loan. Remember the price of the new house will go down more than 9% because labor cost of a new home is about 50% of the cost.

    All said and done I really think it is important to get some taxes from the “cash only” people Illegals, Drug dealers, and tax cheats who do pay anything would have to pay the 9% sales tax!

    I hope this helps.
    Mike in Atlanta

  • schwma on November 5, 2011 3:27 pm

    Dick I still need to hear Cains explanation for the average retiree in terms of 999. Retirees don’t pay payroll tax any more; the average guy is in the 15% bracket but will pay less than that with deductions; and by paying on every item purchased, an additonal 3% in my state, I just don’t see how that will average out well for me. Please have Mr.Cain explain his tax plan in term of the average retiree. An example would be: Income as follows:
    $ 2500/ month from SS
    1000 / month from non qualified stock and bond funds
    Say 5000 per year in capital gain /dividends mostly
    No interest income
    Notal retired income about 45,000 / year lets say.

    In that example how would one benefit from his tax plan. This example would represent the lower middle class who is living on a modest income from their IRA’so other income.
    T plus SS , with no other income. Its the “avearge joe” who always gets screwed in any government plan, so we need to analyse and average Joes’s situation such as an example above. Your interview today had very good points but still lacks clarity for the average retiree situation. Thanks.

  • mwcordell on November 5, 2011 4:54 pm

    Mr. McAdams you are correct that you will not benefit directly if you do not currently pay FICA or Medicare tax. Remember you will only pay the 9% on NEW items! Buy 2010 Ford Taurus with 5000 miles and you won’t pay any national tax. Buy a house built in 2009 and you won’t pay any national tax. If you are like me the only new items I buy are food, medicine, and utilities. All major purchases like cars, houses and furniture are all used usually on a few years old. I already let the wealthy pay the cost of BRAND new today.

    You will benefit indirectly because every company currently matches the FICA and Medicare tax to all of their employees. This is an additional 7.65% cost to their labor. Depending on how much labor cost is in their product or service will vary the cost savings. A lawn service company could reduce their prices by nearly the full 7.65%. Building and Construction companies where labor cost are 50% of their total cost could lower their prices by 3.8%. Drug companies with labor cost are 90% or higher would save nearly 7%. Most of the cost of food is also labor and fuel so grocery prices should also drop.
    If you start to include reduction in corporate taxes, cost of tax compliance, cost of lobbying congress for tax breaks. I am very confident every company will be able to lower their prices by 9% and offer their products and services for the same price they do today. Those companies that DO NOT lower their prices will see their market share decrease to the companies that DO pass the savings to their customers.
    Currently you have to prove to the IRS you deserve to keep your tax money. With 9-9-9 you decide to pay the tax when you make a purchase of a new item.
    Think about this… Would you prefer to pay 9% on everything you earn or would you prefer to pay 9% on the things you choose to buy?

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  • bobinmidmo on November 8, 2011 9:45 am

    What about retired people? The 999 tax system would be great for those still working but for those who’ve retired I only see this as another way of draining our checkbooks even faster. Cain has some solid ideas, but I still think he’s missing quite a few people who’d be hurt deeply by his new tax plan. How many retired people would vote for a guy that’s going to cost them even more than we’re already paying now? Meanwhile Mr. Morris continues to be a delight!

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