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Herman Cain's Commentary Archive 2009-2012

April 12, 2010

VAT: The cowardly tax

April 12, 2010
By Herman Cain

Now that President Obama and the Democrats have generated a projected record $10 trillion in new debt over the next 10 years, they are now singing their favorite song: We must raise taxes!

Sen. Dick Durbin, D-Ill., sent the first signal a few weeks ago when he said paying taxes is the price we pay for living in this great country. Never mind that we are paying too much and that too much of our money is being wasted.

One of the president's senior economic advisers, Paul Volcker, said recently in a speech that "we must raise taxes" to deal with the deficit. Never mind that the administration and the Democrats made an already bad deficit situation worse, and never mind that they were aware of the situation before they jammed the disastrous health-care bill through Congress for the president's signature.

It is outrageous that they have played the taxpayers for the sucker punch of the century. They ignored the coming deficits of Social Security, Medicare and Medicaid while passing the massive health-care bill. To make matters worse, Mr. Volcker is suggesting the dreaded value-added-tax, also called a VAT tax.

Please insert the scream of your choice right here if you already know the implications of a new VAT on this country. Otherwise, keep reading.

A VAT is not a single new tax. It is several new sneak-a-taxes. It taxes each phase in the development of a product or service until it is ultimately sold to the end user, and you also pay any applicable retail sales taxes. These intermediate taxes are passed along to the consumer and are reflected as a net increase in the price of the goods or service.

The doubly outrageous aspect of the VAT is that it is on top of all the other state and federal taxes we pay. Paul Volcker and the Democrats like the VAT because it is hidden from the clueless and uninformed voter, who will forget about it soon after it is passed if it is passed.

The VAT is also a cowardly tax increase because these same clueless and uninformed voters will easily blame the greedy retailers for raising the prices of their merchandise. And for the 50 percent of the taxpayers who have figured out how not to pay any taxes at all, this administration and Congress will find a way to give them a VAT exemption.

Just as Obamacare puts this country a giant step closer to becoming the United States of Europe, passage of a VAT would certainly seal the deal as the New Europe, which would be nearly impossible to undo. I said nearly impossible, not completely.

The answer to reducing the deficit and supercharging the economy is to replace the tax code with the single-rate Fair Tax. This solution assumes, however, that there is no continued increase in federal spending. With this administration and Democrat-controlled Congress, stopping the spending is completely impossible.

Obama and the Democrats in Congress would never consider the answer to reducing the debt and stimulating the economy I just proposed, because it does not achieve their goals of a government power grab, expanding the role of government in our lives or creating more social programs for the clueless and the uninformed so they will continue to elect and re-elect liberal Democrats to Congress and the White House.

Never mind what We the People want, but we will remember in November.

April 4, 2010

Defending ObamaCare with, shall we say... misinformation

April 4, 2010
By Herman Cain

The degree to which President Obama is being misinformed or just uninformed on his own is staggering! But misinforming the uninformed appears to be the Democrats’ strategy to defend their Health Care Deform legislation.

In a nationally televised broadcast interview last Friday on CBS’s “The Early Show”, President Obama said “this country was going to go bankrupt” without forcing changes to the health care system. He believes it was “the right thing to do.”

The uninformed in this country believes it was the right thing to do because Obama said so. Some of us are not so gullible because we are aware of the gimmicky accounting and fuzzy assumptions that got them the projection they wanted from the Congressional Budget Office. Some of us are also aware of the 159 new boards and commissions created in the bill. Some of us are aware of the host of sneak-a-taxes in the bill, and the expansion of the powers of the Internal Revenue Service to become the Health Care Police.

Some of us are keenly aware that the ObamaCare legislation will ultimately lead to health care rationing similar to the systems in Canada, England, Germany and other European countries. But the Obama cheerleaders don’t care.

Some of us are also aware that the recently passed health care bill plus the tsunami federal spending, plus the unprecedented buildup of the national debt, plus Social Security, Medicare and Medicaid deficit spending are the real reasons we are heading toward a bankrupt America. There’s a deafening silence from the president and Congress about these issues because it does not advance their political agenda.

The uninformed have chosen to forget that the president said the unemployment rate would remain under 8 percent if his $787 billion so-called stimulus bill passed.

Well, it passed, and unemployment has been above 9 percent ever since.

The uninformed have chosen to forget that the president promised a new spirit of bi-partisanship in Washington, D.C. Although President Obama spent seven hours in front of TV cameras during his so-called health care summit trying to convince the public he was being bi-partisan, both Senate and House versions of the health care legislation and the final bill passed along party line votes, all Democrats!

Transparency was another campaign promise, but who cares? Some people would rather remain blind to the arm-twisting and deal-making that was done to buy enough votes for passage of this historic disaster to our economy, and the hijacking of our liberties and constitutional rights.

In interview after interview, the Democrats and the administration are sticking to their script of lofty advantages and misinformation. Senator Arlen Specter and Secretary of Health and Human Services Kathleen Sebelius, were booed at a standing-room-only town hall meeting in Philadelphia last Saturday, trying to defend ObamaCare. They did not expect some informed people to show up with very clear and specific questions they could not answer.

Senator Specter even tried to tell the crowd that ObamaCare needed to be passed because 47 million people were uninsured. Someone yelled from the audience “that’s a lie”. Even the president has stopped using that misleading number.

Even though many large corporations have announced multi-million-dollar cost impacts of the new health care law of the land (for now!), President Obama says it’s too soon to judge the new health care law. Translation: The less people know about what’s in the new bill, the easier it will be for people to forget over time, and the easier it will be for the American people to get the shaft once again.

Alternate translation: Trust me!

Please do not hurt anyone as we all rush to get in line for ObamaCare. And there will be really, really long lines. It’s called rationing.

March 28, 2010

We the stupid intend to fight this

March 28, 2010
By Herman Cain

Now that the shock of passing the Health Care Deform bill against the will of the American people has settled in a bit, the people’s sentiment has gone from mad to fighting mad. President Obama and the Democrats are probably not aware of that fact, because they simply don’t care!

As former House Speaker Newt Gingrich said in a statement released last Friday, President Obama and the Democrats are looking back and saying, “We don’t care how mad you are, we got what we wanted.”

They wanted Obama-Reid-Pelosi care and they got it using consistent talking points that did not always match with reality, gimmicky accounting, factual distortions and bribes to Congressional Democrats to secure their votes. They wanted the American people to know that their political agenda will not be stopped by Republicans, public opinion, e-mails and phone calls, rallies or even a huge potential voter backlash in November 2010.

They wanted the American people to know that despite what they say and promise about transparency and reaching across the political aisles, they believe they know best what is good for us and the future of our country. It is arrogance and political elitism on steroids.

The president and his administration, along with congressional Democrats, believe the anger and opposition will subside by Election Day in November. They also believe it is just about health care, and the stupid public just does not understand their intentions. That’s their problem. We the stupid do understand their intentions and we are not going to be a sit-down-and-shut-up citizenry.

We the stupid are angry about passage of Health Care Deform, proposed Cap & Trade & Tax and Kill legislation, the pending Employee No Choice Act, tsunami spending and an abundance of sneak-a-taxes they hope we will not notice.

Their intentions are to turn this country into the United States of Europe, but the American people are saying not so fast! They are raising their voices and turning up the heat.

The premier Conservative Political Action Conference, held last month in Washington, D.C., attracted a record number of nearly 10,000 people who paid their own expenses to be there to learn and hear from the most respected conservative leaders in the country.

Last weekend, the Tea Party Express launched its 44-stop tour across country, starting in Senator Harry Reid’s hometown and attracting a record number of attendees in the middle of nowhere called Searchlight, Nevada. It will end in Washington, D.C. on tax day, April 15. Rallies will be held at each stop and the crowd sizes are already exceeding expectations.

The FairTax Nation launched a virtual on-line tax revolt less than a month ago (www.onlinetaxrevolt.com) and has attracted nearly 250,000 registered participants. It will also culminate with a rally in Washington on April 15.

A Defending the American Dream conference in Wisconsin two weeks ago attracted a record number of people who paid $45 per person to attend, while a first-time Defending the American Dream conference in Georgia last weekend attracted twice as many paid attendees as anticipated.

Hundreds of rallies and Tea Party events are being planned across the country between now and November, and if members of Congress have the courage to hold town hall meetings during their Easter recess, they will be packed to capacity as they were during their August recess of 2009.

These examples may not seem like a tsunami of anger and outrage, but audience reactions and callers to my nightly radio show suggest that it is real and that people are ready to fight to take back their government.

We the stupid are fighting mad, and we are going to fight!