Herman Cain was a businessman, radio talk show host, and author who ran in the United States for the Republican presidential nomination in 2012. Cain suspended his campaign on December 3, 2011.
Economic issues Bank bailouts, and "too big to fail" Cain supported the Troubled Asset Relief Program (TARP) bank bailouts as a way to revive the economy, viewing it as an investment opportunity for the taxpayers. In a 2008 editorial, Cain wrote, "Owning a part of the major banks in America is not a bad thing. We could make a profit while solving a problem."
In May 2011 regarding his TARP support, Cain said, "I don't have any regrets ... I studied the situation. I didn't have trouble with the idea; I had trouble with its implementation, picking winners and losers."
In October 2011 Cain said he does not believe in the concept of "too big to fail" and had stated that he did not agree with the bailouts of "JP Morgan and the big banks on Wall Street".
Debt ceiling Cain opposed increases in the debt limit for the federal government. He was quoted in a July 27, 2011, Politico article that: "I don't believe the debt ceiling should be raised. I don't believe the debt ceiling had to be raised ... Those are scare tactics. Those are simply exaggerated scare tactics."
Federal Reserve Cain believed that there was no need for an audit of the Federal Reserve. Cain also commented that while such an audit is not a high priority for him, he does not object to it. He had stated that he finds it highly unlikely that anything would be found in such an audit, as the internal controls of the Fed are extensive, and that the Fed's problems stem from a politicization of the bank, rather than a failure to exercise due care for those internal controls.
Gold standard Cain supported the Gold standard, saying that abandoning it "allowed Congress to inflate our currency whenever they overspent. Now look at the mess that we have."
Social Security Cain had criticized the current implementation of Social Security, describing it as a "scam." He favored reforming the current system "through free market solutions."
Several times Cain had referenced the Chilean model of redoing social security. He supported the "Chilean model" for younger citizens while retaining the current system for current beneficiaries.
Taxes Cain had supported shifting the tax burden from investment on to consumption. Cain had called for the elimination of taxes on capital gains, and suspending taxes on repatriated foreign profits. He also supported elimination of the estate tax; and in 2007on November 14, 2007 in testimony before the Senate Finance Committee called for the permanent repeal of that tax. Prior to his presidential campaign, Cain supported lowering the corporate tax rate from 35 to 25 percent.
Cain testified in front of the House Ways and Means Committee on May 9, 2002, in support of HR 2525, which would institute a national retail sales tax. According to the Washington Times, Cain had been known as a supporter of the broad national consumption tax on retail sales called the FairTax. During his presidential campaign in 2011, Cain introduced his signature "9–9–9" plan for a 9% tax on individuals, sales, and businesses.
9–9–9 Plan
The "centerpiece"Does the Herman Cain 9–9–9 tax plan have a fatal flaw? By Peter Grier, csmonitor.com October 12, 2011 of Cain's presidential campaign introduced in August 2011 had been the "9–9–9 plan", which would replace all current taxes (including the payroll tax, capital gains tax, and the estate tax) with 9% business transaction tax; 9% personal income tax rate, and a 9% federal sales tax. According to Cain, corporations would be able to deduct costs of goods sold (provided the inputs were made in America) and capital expenditures, but not wages, salaries and benefits to employees.A Bit More About Cain . Paul Krugman. October 15, 2011 Deductions, except charitable giving, would be eliminated. The federal sales tax would not apply to used goods. Cain also said that the 9–9–9 Plan would lift a $430 billion dead-weight burden on the economy. the 999 plan
Cain stated the following summary about the 9–9–9 Plan:
Our current economic crisis calls for bold action to truly stimulate the economy and Renew America back to its greatness. The 9–9–9 Plan gets Washington D.C. out of the business of picking winners and losers, using the tax code to dole out favored, and dividing the country with class warfare. It is fair, simple, transparent and efficient. It taxes everything once and nothing twice. It taxes the broadest possible base at the lowest possible rates. It is neutral with respect to savings and consumption, capital and labor, imports and exports and whether companies pay dividends or retain earnings.
According to the analysis of Howard Gleckman the Tax Policy Center,
When you get right down to it, Cain's [9–9–9] plan is a 25 percent flat-rate consumption tax — not all that different from the FAIR tax that he says is his ultimate goal. This tax would be paid three times: first on wage income, again at the cash register as a sales tax, and yet again by businesses on their sales minus their cost of goods and services. For tax junkies, the first is a flat tax. The second is a retail sales tax and the third a business transfer tax. But they are all consumption taxes.Howard Gleckman, Cain's 9–9–9 Plan Would Cut Taxes for the Rich, Raise Taxes for Almost Everyone Else Tax Policy Center October 18, 2011
Although Cain had spoken about having designated 'empowerment zones' wherein a lower percentage, such as 3%, is paid instead, apart from this consideration, some have called Cain's plan more regressive than current policy, thinking it would raise taxes for most households, but cut them for those with the highest income.TPC Does Herman Cain October 18, 2011, The Tax Policy Center has the distributional analysis of 9–9–9.
Cain modified the plan for people under poverty level, reducing income tax for the poor to 0%, telling an audience in Detroit October 21 that the poorest Americans would get a "9–0–9" plan. 9–0–9, 0% income tax for the poor
In an October 18, 2011 debate several of the other contenders for the GOP nomination attacked the plan, with candidate Rick Santorum referencing the Tax Policy Center's claim that 84%T11-0375 – Herman Cain's "9–9–9" Tax Reform Plan; Baseline: Current Policy; Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Tax Policy Center October 18, 2011 of Americans would pay more and that the plan would entail "major increases in taxes on people," a charge Cain had denied.David Lightman and Steven Thomm, GOP presidential candidates clash in testy debate McClatchy News Service October 19, 2011
Some economists support the 9–9–9 Plan. The former Reagan Treasury official Gary Robbins stated that the 9–9–9 Plan will expand the GDP by $2 trillion, create 6 million new jobs, increase business investment by 33%, and increase wages by 10%.9–9–9 Plan | Herman Cain for President Also, Art Laffer, a famous supply-side economist, told HUMAN EVENTS that "Herman Cain's 9–9–9 plan would be a vast improvement over the current tax system and boom the U.S. economy.". Art Laffer's quote
Conversely, other economists feel that the 9–9–9 plan would not stimulate the demand.Bartlett, Bruce. "Inside the Cain Tax Plan." The New York Times, October 11, 2011. Bruce Bartlett of the Reagan and George H.W. Bush administrations had written that Cain's plan "would increase the budget deficit without doing anything to stimulate demand".
The Economist criticized the 9–9–9 Plan stating that the Cain plan is not a reduction in the current corporate tax, but instead a new value added tax (VAT). The article also stated that Cain's final tax would be a 30% VAT, as compared to the 15% European Union value added tax."Dial 9–9–9 for nonsense." The Economist, October 17, 2011. The Cain plan would change the 35% corporate tax to a 9% transaction tax, which would be flat except for payroll deductions for employees in empowerment zones. 9–9–9 Plan www.hermancain.com
Cain said the following about the 9% sales tax.
Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher. The 9–9–9 plan
Welfare Cain had criticized social welfare programs in the United States, stating that, "Programs today are designed to make people more dependent rather than less dependent."Q & A: Herman Cain on Faith, Calling, and Presidential Aspirations, Christianity Today, Interview by Trevor Persaud
Social issues
Abortion Cain identified as pro-life and opposed abortion in all cases, except where the mother's life is endangered.Three Republicans battling for spots in Georgia's likely Senate runoff | AccessNorthGa He believed that life begins at conception. He favored defunding Planned Parenthood, an organization he had referred to as "Planned Genocide" because he views it as guilty of genocide against black Americans.
Affirmative action Cain supported ensuring that minorities receive the same opportunities as non-minorities. He does not agree with a "quota" style affirmative action system, which he believed gives an advantage to minorities simply because they are a minority.Herman Cain Letter to the Editor of the Augusta Chronicle, Affirmative action is a negative step , April 28, 2004.
Homosexuality Cain was an opponent of the legalization of marriage for same sex couples in the United States. He supported the Defense of Marriage Act. He would seek to reinstate the Don't Ask, Don't Tell policy.
Islam Cain had made a number of comments regarding American Muslims, and the hypothetical implementation of sharia law in the United States.
Some comments made by Cain regarding Muslims have caused controversy. He said that he was "uncomfortable" when he found that the surgeon operating on his liver and colon cancer was a Muslim. He later explained: "based upon the little knowledge that I have of the Muslim religion, you know, they have an objective to convert all infidels or kill them". He had also spoken of his distrust of another doctor when his name "sounded too foreign", telling the audience at a Biblically themed amusement park "My mind immediately started thinking, wait a minute, maybe his religious persuasion is different than mine! She [the nurse] could see the look on my face and she said, 'Don't worry, Mr. Cain, he's a Christian from Lebanon'. Hallelujah! Thank God!"
When asked in March 2011, Cain stated that he would not feel comfortable appointing a Muslim to his administration, or as a judge saying: "No, I will not ... There's this creeping attempt, there's this attempt, to gradually ease Shariah Law, and the Muslim faith into our government. It does not belong in our government".
He explained that his view was in reaction to a lawsuit in which the Council on American-Islamic Relations (CAIR) sought to block the implementation of a 2008 Oklahoma law which would have denied the use of Sharia law in state courts, and a Florida judge's decision to use Sharia law to settle a dispute within a mosque, despite the Court's decision not to use ecclesiastical law in the past (see Kreshik v. St. Nicholas Cathedral), and a case in New Jersey. Cain had described his position as being "careful and cautious."