who blogs at Dirigo Blue and Kennebec Blues.

The voo-doo-doo 9-9-9 economic tax plan for a third world America.

Tag sales, yard sales, and rummage sales all will be a part of the “vibrant” economy under the voo-doo-doo 9-9-9 economic tax plan of Herman Cain. One component of the plan, the 9% national sales tax is unlike a sales tax levied in many states because it includes taxing key essentials of living for the working poor: food, clothing, and shelter.

Cain gives us this illogical view for a family of four (assume 2 parents and 2 children) making ends meet living on \$50,000 using the mathematic scenario noted in this piece:

So this working family will in Cain’s description have a net income of \$45,500 net after the first 9% income tax bite.

Let’s work the numbers! If they spend  \$163.50 per week on groceries (that’s \$150 careful planned challenging shopping for a balanced diet plus the 9% Cain sales tax), they will have an annual food cost of \$8,502 (zero calories from the 9% tax total of \$702) leaving them with \$36,998 cash on hand. Now let spend \$847 per month in rent for two-bedroom flat with \$75 electric per month and \$300 average heating for six months for an annual cost of \$12,864. Now we’re sitting on \$24,138 cash on hand which will pay for heath insurance and medical out of pocket costs of \$500 month, a used vehicle car loan of \$300 month, and gas costs of \$50.00 a week to leave \$11,938 cash on hand. Assuming that the two kids are school age, the annual fees paid for before- and after-school care for both would be \$7,696 (tough luck if you have an infant), reducing our cash on hand to \$4,242. Assuming \$1,500 annually for dental and eye out of pocket is reasonable as long as no one needs a root canal or high cost prescription glasses, leaves us with \$2,742 cash on hand or a whopping \$52.73 per week to buy clothing, shoes, school supplies, furnishings, do laundry, get haircuts, any tolls or parking, and minor incidentals. Oh, kiss off matching that 401k or putting a couple grand aside in the annual IRA contribution or college fund (What college fund?); this family is just a decimal point away from economic disaster if any little thing goes wrong.

But Herman Cain has advice for us to save the possible \$4.75 per week 9% tax bite on this last bit of “expendable” cash - one can avoid the taxes by purchasing used goods!

By the way if a family of four is living on \$25,000 (basically two minimum wage earners), Cain just tells us to "just cut these numbers in half!" Cheaper high calorie food, skipping health care, a one-bedroom place, and a few other thrifty tricks along with many visits to yard and rummage sales ought to do the trick.

Cain’s insane plan also does little to build an economy presently based on consumer spending and yearning to rebuild manufacturing if its general premise is that an appreciable segment of society must resort to and apparently are expected to purchase used goods at the margins of society.

Herman Cain’s 9-9-9 plan is the first tax scheme floated in recent times that instead of either a conservative supply-side goal (which didn’t work) or a liberal economic justice vision that purported to lift all boats, sinks most boats. Its removal of the payroll tax for Social Security and Medicare along with its onerous shifting of taxes agressively and regressively down the economic ladder would mire this country in generations of rapidly growing poverty with far fewer social services. It is a plan for a third world America.

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#### Comment Preferences

• ##### Cain's comment on buying used: Where does mom (10+ / 0-)

buy "used" diapers or formula for her baby or "used" bread for the other children?

• ##### See below.... I would like some used needles (3+ / 0-)
Recommended by:
Bruce Bourgoine, drmah, peptabysmal

for my diabetes and if you have any unused insulin....

"Don't dream it, be it" - Brad, Janet and Frank

[ Parent ]

• ##### Problem is we're already shopping at yard sales(9+ / 0-)

and thrift shops right now.

You have exactly 10 seconds to change that look of disgusting pity into one of enormous respect!

• ##### Exactly B B, it's a Koch Bros. plan...(3+ / 0-)
Recommended by:
mrsgoo, luckylizard, peptabysmal

for a third-world oligarchy.  The top 1% own about 40% of the wealth, and they want more... a lot more.

"Congress has not been able to fix these flaws so far, so I will." - President Obama, 9/23/11

• ##### Not more...(2+ / 0-)
Recommended by:
captainlaser, BarackStarObama

They want it all.

-7.62, -7.28 "Hold fast to dreams, for if dreams die, life is a broken winged bird that cannot fly." -Langston Hughes

[ Parent ]

• ##### They want the billions they forced the Post Office(0+ / 0-)

. . . to park.

I used to be Snow White. And then I drifted. - Mae West

[ Parent ]

• ##### Living in used(5+ / 0-)

refrigerator boxes?

• ##### We Already ARE a 3rd World Society, Just the most(4+ / 0-)

powerful one in history, in many measures of functionality.

Greater wealth concentration than the 1st world societies, military complex preposterously oversized compared to the credible threats, a population with no easy way to be informed and with little influence on its government, increasingly exporting raw materials to increasingly import finished goods and services, large superstitious movement that regards much of the rest of the population as enemy, offshore interests increasingly dominating governance.

Hardly a complete list.

Obviously most of the population presently have far higher living standards than the other 3rd world countries, but the future lasts a long time....

We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

• ##### Herman Has Extensive Ties w/ The Koch Brothers....(3+ / 0-)
Recommended by:
captainlaser, drmah, CherryTheTart

He traveled for them in 2005-2006 on their "Americans for Prosperity" tour.  He was their corporate speaker.  They even covered his travel expenses plus "an honorarium".

His current campaign manager, Mark Block, worked for AFP & the Koch boys.  So did his former spokeswoman Ellen Carmichael (she just resigned from the campaign).  And so did Rick Lowrie who just made up Cain's 999 tax plan benefiting the top 1%.

Plus six other current or former employees of Cain have also worked for American for Prosperity & the Koch brothers.

Strangely......Herman doesn't list any of Koch work on his autobiographical website.  It's almost like he doesn't want us to find out.

• ##### 9-9-9 Koch Roots(2+ / 0-)
Recommended by:
captainlaser, drmah

In fact, Rich Lowrie, the man from Cleveland that Cain says came up with 9-9-9 served on the Americans for Prosperity (AFP is a Koch funded group) board of advisors from 2005 to 2008.

• ##### AFP(1+ / 0-)
Recommended by:
dagnome

Americans Formulating Poverty

"Don't dream it, be it" - Brad, Janet and Frank

[ Parent ]

• ##### Has anyone done the numbers for retirees?(4+ / 0-)

People who put their money away under one tax system and then after they retire and expect low taxes get hit with 9%+9%?

When you retire, all your pension withdrawals are taxable and would be at 9% under his plan.  In addition, all your expenses (and most pensioners spend all income on expenses) are at another 9% plus state taxes plus local taxes.

Will you have to pay the 9% tax on your medical and prescription drugs?  You bet.

The average pensioner cannot make it under that tax structure.

"Don't dream it, be it" - Brad, Janet and Frank

• ##### Cain's answer - Delivering Pizza(2+ / 0-)
Recommended by:
CherryTheTart, captainlaser

From: Debunking Cain: Turning 999 Upside Down by Larry Kahn

Middle class RETIREES will be devastated by this “fair” tax plan. For those who consume more than they earn–think retirees living off savings–the national sales tax will create a huge tax burden where none existed before. Their savings have already been taxed when originally earned under the income tax, and now the sales tax would tax the same earnings again when consumed! Those retirees who scrimped and saved during their careers to fund retirement rather than buying expensive cars and vacations will find themselves forced back into the work force to fund the shortfall.

• ##### used food is still shit, just like "flavor/color/(0+ / 0-)

gender of the month" cain.

give him his tinfoil hat and kick his worthless ass to the curb.

a complete jackass, but a i hope he runs. beating him will be like beating a drum.

rum-a-tum-tum!

I don't believe i care to marry, Though i cannot explain exactly why, It somehow seems to me that matrimony is misery, Simply a faster way to die.~ Whiskeytown

• ##### Competition for quality used items is cutthroat (1+ / 0-)
Recommended by:
CherryTheTart

now ,and it can get nasty real quick. Anyone that has shopped @ resale shops, yard/estate sales, and flea markets, lately, has experienced more hostility among others who are seeking the deals as well.

Those people may be using these items themselves, family, or sell on E-bay/consignment stores so they can make a living. I've shopped like this for years and it's always been very competitive, but more civil, now people are more desperate, hungry. This is the worst I've ever seen

One more way those bass-turds can pit us against each other, and we are supposed to depend on this and accept this as a realistic way to meet our needs.
Cain is a stupid ass.

• ##### An idea.... A bit gross(1+ / 0-)
Recommended by:
CherryTheTart

How about everyone save their used toilet paper for a week and then send it to the Cain campaign.

Tax that Herm...you moronic, heartless, asshole.