Why Herman Cain had to be “Lynched”

Mr. Cain had at least 3 strikes against him in his bid for the Presidency of the United States:

  1. He was a Southern Black with roots in poverty whose family fought their way into the American Dream.
  2. He was a Conservative Black man.
  3. He believed in abolishing the 16th Amendment and there by eliminating the existing Tax Code and replacing it with his 9-9-9 Plan.

While politically he had to be “eliminated” at all costs by the first “two strikes”, it was the third strike, the replacement of the existing tax structure and replacing it with a new 9-9-9 Plan that really rallied the “establishment” against Mr. Herman Cain.  Why, the tax code is the blue print for:

  1. Controlling the middle class and making sure they don’t accumulate too much by taxing the middle class at very high levels.
  2. Controlling the poor and keeping them poor by giving them incentives not to work and earn income that would be taxed!  In fact, if you stay poor, you are rewarded with tax rebates that you did not contribute to…
  3. Controlling the Rich:
    1. Making sure “Pet” companies and industries do not pay any taxes and keep everything they earn so they can give back to political parties.  (GE)
    2. Make sure Unions do not pay any taxes so they can keep everything they earn so they can give back to political parties.
    3. Make sure the Rich can shelter their money in trusts and other vehicles so they can keep everything they earn so they can give back to political parties.

The tax code is not primarily a vehicle to provide the government with tax revenues to pay its expenses but a social engineering tool whereby the government and its handlers can form the kind of society they want the US to become.  Mr. Cain’s plan would take all of the social engineering elements out of the tax code and make the tax code merely serve to provide the government with tax revenues to pay its expenses.  THIS SCARED THE HELL OUT OF THE STATIST WHO CONTROL THIS GOVERNMENT WHEN CAIN ROSE IN THE POLLS…

China Syndrome:  Cain’s plan would have also hurt the status quo of certain interests who have invested in China and sell goods back to the US.  Cain would have charged the imports of those goods a 9% tax when entering this country.  Cain would have exempted US companies who exported their goods to China and they would not have to pay the 9% tax on outbound goods and services.  This part of Cain’s plan would have given our exports a competitive advantage over good produced overseas.

Middle Class Fairness:  The middle class always pays the most taxes in terms of total dollars just because there are more people in the middle class than any other economic segment in the economy.  The current tax code stymies the middle class by forcing them to buy homes to get deductions as that is really the only hedge they have against paying taxes.  The middle class also pays almost all of the “Payroll Taxes” (with their employer contributing the same amount for them).  The poor, who do not work to a substantial degree,  pays little of the total payroll taxes but they receive a disproportionate share of the social security and disability benefits when factored against their lack of contributions.  The middle class wage earners pay 7.54% of their gross earnings into payroll taxes (including Social Security at 6.2% and Medicare at 1.45%)  and their employers contribute a matching amount.  Most employers consider their matching of the FICA employee taxes a “Benefit” for the employee, many employers would pay this amount to the employee if they did not have to pay it to the government.   The middle class employee is actually contributing some 15.3% of their earnings to payroll taxes.  Then, the average middle class family ends up in a 15% income tax bracket when all is said and done.  Combining the payroll taxes with the employee’s income taxes, the middle class tax payer is paying over 30% in Total Federal taxes under the current law.  Under Cain’s plan, this would be reduced to 9% plus 9% on any purchases of NEW items.  That is a total possible rate of 18% versus the 30%. 

Poor Fairness:  Cain also proposed exemptions for those in or below the poverty levels from the income and sales tax portions of 9-9-9. 

Rich and Privileged Fairness:  Without going through all 81,000 pages of the current tax code here, suffice it to say that all of those perks embedded in the current tax code would be gone for those who use those perks to shelter income or avoid any tax on their consumption.  There is no way for this group to avoid the consumption tax portion of Cain’s plan and this group consumes a lot.  Further. all of the “corporate welfare” writeoffs are gone.  No one company or industry gets preferential treatment over another.  You here the term “Crony Capitalism” bantered around.  You should know that this term is  Non sequitur as capitalism that is jaded with political influence is no longer capitalism.  It would be more accurate to use the term “Crony Socialism” whereby the state provides undue benefits to those who support the goals of the state.  Each company would have to pay the 9% income tax and also pay a 9% consumption tax on new goods or services they consume internally.  COGS are still deductible under the Cain plan.  Warren Buffet and Bill Gates would get their wish and they would pay higher taxes than they do now.  Gates runs practically all of his expenses through his trust but under Cain many of those purchases he makes personally would at least be subject to the consumption taxes.  General electric would have paid $500,000,000 in taxes this year rather than receive a TAX BENEFIT OF OVER $5 BILLION on their overall operations. 

The bottom line is that too many political insiders and statists benefit from the current tax code staying in place.  There are only a handful of Congressmen and Senators who would advocate the elimination of the tax code on either side of the aisle.  The reason is power and control.  They can tweak the code anytime they want and make or break companies, lower the standard of living for the middle class, raise the standard of living for the poor or promote politically correct industries such as green energy.  The bottom line, they can control the middle class where all of the ready cash is. 

The middle class pay for running this country on a day-to-day basis. 

The tax perks given to individuals, unions, PACs and companies goes to pay for the running of the politicians…

That is why Herman was lynched…

If you want to follow Herman, go to http://www.thecainsolutions.com/ and sign up to follow his new campaign to push for Government reform….

PS:  No other Republican candidate has proposed repealing the 16th amendment and replacing the entire tax code.  All of proposed that the current code be kept but a flat tax or other mechanism be put in place IN ADDITION TO THE CURRENT TAX CODE.  These candidates aren’t the same threat that Cain was…

RD Pierini

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One thought on “Why Herman Cain had to be “Lynched””

  1. The real kicker is that making the poor and middle class pay more in taxes, while the rich pay less, will only hurt the companies that the rich own.

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