Life Compass
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Let’s Get Ready to Ruuuuuuuuuuumble!

World Heavyweight Boxing returned to Las Vegas at the Tuesday Night CNN Debate where GOP candidates squared off and began landing blows on each other. Michelle Bachman throw the first fist going after Herman Cain and his 999 Tax Plan. Rick Santorum attempted a body slam of the plan claiming it would raise the taxes for 84% of the nation’s households and offered no breaks for married families with children vs. a single tax payer with no dependents. Cain stated that his colleagues were using an apples / oranges comparison. Mitt Romney seized that opportunity to ask him if state sales taxes would go away under Cain’s 9% national tax. When Cain, “No,” Romney responded that no one wanted that bushel of apples and oranges.

The charge has been that Cain’s proposal of a national sales tax would add 9% to goods and services where many states already tax those same goods meanig it would be a 15% to 19% sales tax.

Cain needs to better articulate how his plan works in greater detail to alleviate the fears that his fellow opponents and President Obama will use to their advantage with the casual voter.

How his plan actually works is to take the 15% – 18% income tax rate for middle class tax payers and the 35% – 50% tax rate for wealthier Americans and flatten it to a 9% across the board rate. By adding a national sales tax it makes up some of the difference cut from the income tax rate and collects revenue from the 47% of Americans who pay nothing.  By lowering the corporate tax rate to 9% it will lower production costs and thus lower prices on consumer goods. In other words, though a sales tax looks higher on the surface … when you factor the plan as a whole (9-9-9)  the cost of living goes down which means more money in your pocket.

Bachman warned that creating a new revenue stream for Congress means it would be permanent. She also warned that during production of a good, each time it reaches another phase there would be a 9% tax added. Cain retorted, “No. I am proposing a flat 9%.”

Bachman did say she believed that EVERY American should pay something. Okay … isn’t that a tax increase? Yes. It also broadens the tax base. IT IS EXACTLY WHAT THE 9-9-9 PLAN CALLS FOR!

Despite drawing early heat which could have derailed Cain, he did not back down. Newt Gingrich actually toned the attack launched at Cain by stating his plan is, “bold” and thanked Cain for actually bringing a real discussion to the fore front on a real issue.

The attacks between Romney and Perry took the attention off the 9-9-9 Plan. Rick Perry accused Romney of hiring illegal alliens in 2006 and keeping them on the payroll for over a year. At first Romney denied the charge then explained he did not know the lawn care company he hired subcontracted to illegals. Perry was forceful and combative with Romney, often cutting him and calling him a liar. “This has been a tough couple of debates for Rick, and so I understand that you’re going to get testy.”

Nearly all the candidates launched into Romney over health care stating his plan in Mass became Obamacare. Romney, for the first time, appeared agitated with the onslaught. Again, Newt took a softer approach which bailed Romney out of the health fight much like his earlier comments to Cain defused the financial fight.

Ron Paul again demonstrated his inept naive foreign policy and national defense positions. He also broke the First Commandment of Conservatism: Thou Shalt Not Defame Reagan.

Overall, Cain held his ground and will remain the same in the polls. CNN pundits predicted Cain peaked last night. I disagree. He will need to give more details of his 9-9-9 Plan but how does one articulate detail in 60 seconds? But Cain will need to sharpen his defense. Romney was the “named” winner. I disagree. He was knocked off his game plan and exposed himself as one who pontificates off other’s answers. He’s very, very good at taking someone else’s answer and off the cuff adding to it. He’s a tremendous salesman and politician.

The next debate is in a month. So for now things remain as they hit the campaign trail. They need to remember to save their best punches for Obama Policies.

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