Book Excerpt - page 25 of Herman's book where he discusses EO/AA and this op-ed from Augusta Chronicle "Affirmative Action is Negative Step"
Here are some of the facts: Herman Cain served on the board of directors for Utilicorp United Inc. from 1992 to 2003. Aquila Energy Corp.--as PSI Inc. was later renamed--was made a subsidiary of UtiliCorp, and in addition to its marketing functions, expanded into such related, but unregulated, areas as natural gas storage and transmission.
By 1990 Aquila was responsible for 21 percent of UtiliCorp's earnings. In 1992, Congress enacted the Energy Policy Act. This legislation allowed utilities and other entities to build electric generators and to sell the power produced at unregulated prices on the wholesale market. In doing so, it unleashed a series of changes in the previously staid utility industry unmatched since its birth about a century previously.
This also lead to the Emergence of Enron and other energy trading companies competing in the natural gas market for electric generation. Natural gas prices doubled November 2000, and then crashed by February 2001.
In December of 2000, Utilicorp announced a plan to spin off Aquila, and had sold off 20% in stock. However after the crash of the NG prices in 2001, Aquila started to collapse without the structure of Utilicorp. So Utilicorp announced it would buy back stock in Aquila to try and save it. This hit the entire company in both stock and net worth.
This was during the same time Enron went down in flames.The lawsuit against Aquila was a result of employees wanting to invest too much of their matching stock into the company, which was showing huge returns. The employee retirement fund had over 50% of it's holding in company stock, but regulations from 1933 was supposed to limit this to no more than 20%. Employees in the lawsuit claim that the company either encouraged them or didn't prevent them from investing too much directly into the company.
The board of directors had separated itself into committees to oversee different aspects of the company early on. Herman Cain was the chairman of the compensation committee that oversaw pay and bonus' for executives and other positions. The bonuses that he approved were in line for the time when the entire company was seeing high profits in the late 90's.
Bonus's are based on the previous year performance. The financial problem with Aquila didn't show up until mid 2001 during the recession. There was a Pension and Benefits committee and a retirement committee. Herman Cain was not on either one of those. Thus Cain didn't come across the activity and paperwork to see what was going on with these committees.
The lawsuit that was filed named all sorts of people at the top even if they didn't have basic oversight at issue with the lawsuit. Class action lawsuits tend to always do this.
The MotherJones article author took a few general details and then made all sorts of claims that weren't in the lawsuit they referenced. It is typical of liberal writers being lazy. Here is the link to the lawsuit paperwork.
If Herman had been involved an ANY wrong doing, a) the SEC would have taken action; b) the company would have removed him; and/or c) Cain would have been made to pay a fine. NONE of these actions occurred. In fact, he was actually REWARDED by being appointed the presiding independent director of the board of directors.
After the incident happened...FROM: AQUILA INC - 10-Q QUARTERLY REPORT - 09/30/2002 Our board of directors met on November 6, 2002, to consider, among other things, enhancements to our corporate governance practices. At that meeting, Aquila's independent directors met in a separate session and appointed independent director Herman Cain, as the presiding independent director of the board of directors.
The directors then formed a new Corporate Governance/Nominating Committee, chaired by independent director Stan Ikenberry. This committee: is composed entirely of independent directors; will oversee the development of a comprehensive corporate governance guidelines, including, among other things, management succession planning, guidelines for avoiding conflicts of interest, enhancements to our existing code of business conduct and online ethics training required of all employees; will oversee the evaluation of board members and executive officers; and will make recommendations to the board of directors regarding nominations of members to the board of directors and its committees, the size of the board and decisions to fill, or not to fill, vacancies on the board of directors.
In light of our increased focus on the fair, complete and accurate reporting of our financial information, our completely independent Audit Committee, chaired by independent director Gerald Shaheen: will meet at least on a monthly (rather than quarterly) basis; and has assumed responsibility for retaining the independent auditors and managing that relationship, including screening and pre-approving all audit and permissible non-audit services that will be provided by the independent auditors to the company.
Herman Cain: Obama Will Pay in 2012, Voters Aren't Stupid
A strong military - Defense spending should be used more effectively, but never cut below 4% of GDP.
The fight against Islamic Fascism is global. Fight it wherever it is a threat to the United States of America. Let our intelligence agencies do their jobs.
Here is the DOMA audio clip from Bryan Fischer's radio show where Herman discusses DOMA.
Transcript - Fischer: I want to give you an opportunity, Herman, as a possible 2012 candidate: what is your take on President Obama's refusal to defend the institution of natural marriage?
Cain: I think it is a breach of presidential duty bordering on treason. The oath of office by the president says that he will protect, observe, and defend the Constitution of the United States of America, which means all of its subsequent laws. The fact that he says that he has asked the Department of Justice not to enforce it (DOMA), to me, is a breach duty as President of the United States.
Here is another video clip where he discusses DOMA (~2:20 into it): Herman Cain: Obama Will Pay in 2012, Voters Aren't Stupid
Herman Cain on Obama's Refusal to Enforce the Defense of Marriage Act
Cain's Economic Vision
9-9-9 Made Simple
9-9-9 - The Issues Discussed
1) WHAT IS 9-9-9?
A 9 percent business flat tax - Gross income less all investments, all purchases from other businesses. And no double taxation of dividends. A 9 percent individual income flat tax - Gross income less charitable deductions. A 9 percent national sales tax - This significantly expands the tax base which helps everybody. Applies only to new items. Used items are not taxed.
2) ADVANTAGES OF 9-9-9
9/9/9 throws out current tax code, and replaces it with 9% income tax, 9% corporate tax, and 9% sales tax. Rates are EASY to understand - no more guessing. It eliminates the estate tax and payroll taxes.
Provides simplicity, it allows for deductions to charitable contributions, all businesses are treated the same (C-Corporation, LLC, S-Corporations will all pay 9% on corporate taxes). Eliminates corporate loop holes. No more special favors.
The 9% national sales tax will have no impact on state or local sales taxes. The 9% sales tax does not affect purchases of used equipment.
It replaces the entire 15.3% federal payroll tax that is currently levied on your paychecks. No limits on supplemental income earned while on Social Security.
3) THIS IS STEP 1
9-9-9 is a bridge to the Fair Tax and eventual elimination of the IRS. In Phase 1, the IRS exists, but much smaller. Phase 2 of Mr. Cain's economic plan calls for elimination of the IRS and a complete implementation of the Fair Tax.
Revenue-neutral, we currently spend $430 billion on income tax filing and compliance as a nation. Every dollar you send to the IRS, it costs thirty cents to send it in. IRA & 401K withdrawals are included in income and the 9% tax would apply. When money was contributed to those accounts, the deductions were calculated on much higher tax rates, but now when money comes out, it will be taxed at lower rates.
Further, as it relates to all investors (pension fund recipients, mutual funds, 401Ks, etc) the "9-9-9 Plan" lowers the cost of capital (by eliminating double taxation of repatriated foreign profits, dividends and capital gains) which increases the value of capital assets (ie stocks)
4) A LITTLE TAX HISTORY TO SET THE STAGE FOR 9-9-9
In 1913, the Sixteenth Amendment to the United States Constitution was ratified.
In fiscal year 1918, annual internal revenue collections for the first time passed the billion-dollar mark, rising to $5.4 billion by 1920.
With the advent of World War II, employment increased, as did tax collections - to $7.3 billion. The withholding tax on wages was introduced in 1943 and was instrumental in increasing the number of taxpayers to 60 million and tax collections to $43 billion by 1945.
In 1986, the tax code was amended to flatten the tax structure. The top tax rate was lowered from 50% to 28% while the bottom rate was raised from 11% to 15%. Many lower level tax brackets were consolidated, and the upper income level of the bottom rate (married filing jointly) was increased from $5,720/year to $29,750/year.
This package ultimately consolidated tax brackets from fifteen levels of income to four levels of income.
However, the tax code has been amended and slowly broadened for various reasons over time. The biggest reason is an attempt to widen the tax base and increase tax revenues. However, these changes have also made the code more complex given special breaks to certain groups, and made if a lot more difficult to do your taxes.
5) 9-9-9 vs. FairTax
Herman has been a long time FairTax supporter. So, why is he proposing 9-9-9 instead of the FairTax? TIME, EDUCATION, and AMENDMENTS!
9-9-9 is Phase I of Herman's economic vision. We need these changes now so we can jump start the economy.
AMENDMENTS - Why canít we go straight to the FairTax - People are under the impression that the Sixteenth Amendment made the income tax a permanent fixture in the U.S. tax system
EDUCATION - The public has to understand the FairTax - opponents will say it adds 30% tax on top of everything.
TIME - The FairTax calls for the 16th Amendment to be repealed.
Before an Amendment can take effect, it must be proposed to the States by a two-thirds vote of both houses of Congress or by a convention called by two-thirds of the States, and ratified by three-fourths of the States or by three-fourths of conventions thereof, the method of ratification being determined by Congress at the time of proposal.
Just taken at face value, it will take some time because one party (likely, Republicans) will have to control the Senate, the House, and the Presidency. NOTE: The average time to amend the US Constitution was beginning to get so long that a 7 year deadline of was implemented for the last few Amendments! SEE: Deadline imposed on ratification process.
Bottom line is this...it will take some time to get the FairTax implemented. And, currently, neither party has a super majority (and we won't even discuss 3/4 of the States...though it is more doable at this time). Herman is smart to use existing code to get a national sales tax in place, reduce the other taxes, and then shoot for implementing the broader goal.
As for a realistic time frame, one would assume that his first year in office would be getting 9-9-9 in place. That means you are looking at educating the public in year two. And, then trying to get it in place by years three or four. But, that all depends on the which party is in power
6) CAN THE 9-9-9 RATES CHANGE?
To address the question about..."but what if Congress changes the rates..." let's look at it on face value. While that could happen, it is NOT as likely that they would change significantly. Our combination of property, payroll, corporate, and personal income taxes was averaging at approximately 24% in 2009 (According to the OECD). However, note that the average has been stable within a few percentage points for DECADES.
So, why all the hoopla? And, why would Congress even care. Simply...We the People dictate lower taxes, and Congress tends to listen very closely when it comes to the pocketbook (very similar to what they did for the Bush Tax Cuts recently). And, Congress is leery of creating a dramatic impact on the US economy. The developed economies seem to agree on the most that can be extracted through taxes is about 23% of Gross Domestic Product.
So, the most likely scenario would be for the tax rates to fluctuate up or down very slightly. But, even that move would require a 2/3 majority Congress (9-9-9 proposes that 2/3 Congress have to approve a rate change) which is tough to accomplish. Given the way Congress likes to give themselves an out, you're more likely to see a deadline for the the tax rates to expire and then a renewal process similar to what we saw with the Bush Tax cuts.
7) DOES 9-9-9 BURDEN THE POOR?
Here is a plan from a man who rose from the roots of poverty. Does ANYONE actually believe he wants to unfairly burden the poor? With all due respect, their calculations are wrong. Let's break it down this down some.
It eliminates payroll taxes. Payroll taxes are the federal taxes that employers are required to withhold and/or to pay on behalf of employees. The combined amount is 15.3 percent. It eliminates the estate tax. The estate tax is imposed "on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.
Currently, the rate ranges from 18 to 35 percent It eliminates the "sneak-a-taxes" we pay such as the gas guzzler taxes, alcohol taxes, travel taxes, firearm tax, estate and gift taxes, federal telephone excise tax, life insurance policy taxes, excise taxes on imports, cigarette taxes, utility taxes, etc.
It eliminates corporate loop holes. No more special favors. Provides simplicity in the tax code. It allows for deductions to charitable contributions. It decreases the costs for income tax filing and compliance. For every dollar you send to the IRS, it costs thirty cents to send it in. Currently, we as a nation spend $430 billion on income tax filing and compliance.
Used items are not taxed. Examples: used cars, used clothes, used houses, used jewelry, etc., Under the current tax code, a person making $50,000 will pay roughly $10,000 in taxes. With 9-9-9, they will pay $4,500 in income taxes. If they buy all new items with the remainder, they will still achieve nearly $2,000 in savings.
Right now, on average, 22% of the price we pay for everything is the corporate income tax being passed on to the consumer. When the corporate tax drops to 9% there is room for a 13% drop in prices, which should occur within 90 days. Further, the burden of the corporate income taxes falls 2/3 to labor and 1/3 to capital in the form of lower wages and profits, respectively.
With more money left in the hands of businesses and consumers, there will without a doubt be a dramatic increase in market demand, production and competition. This means that prices will DECREASE, and likely absorb most, all, or even more, of the 9% sale tax. A BENEFIT TO THE POOR Again, it's only on the dollars you choose to spend on new items, and everyone gets an instant raise in their paychecks due to the elimination of the 15% payroll tax.
8) WILL 9-9-9 HELP THE DEBT? Bottom line. YES. See Ax D. Whiteman breakdown.
9) REVIEWS OF 9-9-9
Gary Robbins, Economist and former assistant to the director of the Office of Tax Analysis for the U.S. Treasury: Gary Robbins analyzed and scored the 9-9-9 plan. The analysis shows it would create enough jobs to cut unemployment in half.
Stephen Moore, WSJ economist: His argument for a "9-9-9" plan puts the current income and payroll taxes in the shredder and replaces them with a 9% personal income tax with no deductions, a 9% net business income tax, and a 9% national sales tax.
That would be rocket fuel for the economy.
10) COMMONLY ASKED 9-9-9 Questions:
SSDI vs 9-9-9: SSDI IS CURRENTLY TAXED! In Herman Cain's interview with Huckabee, 10/15/11, Herman discusses the 9-9-9 plan including mentioning Social Security not taxed.
Am I paying 18%: Many people think this means they will be paying 18%, being the 9% income tax and then the 9% sales tax, but, again, the sales tax only applies to dollars spent at the consumption level. Let's say you earn $2,000 for the month. Currently at 15% you pay $300 in tax. With 999, you'd pay just $180, leaving $1,820. You then pay rent and bills, we'll say $820, then save/invest $500, and then use the remaining $500 for food and shopping. The 9% sales tax only applies to the $500 spent on consumption, which is only another $45. In the end, we paid $225 total, or only 11.25% of earned income, versus $300 currently at 15%. That's a simple example, but it illustrates the concept nicely.
Under 9-9-9, will I be paying more for items I buy? Right now, on average, 22% of the price we pay for everything is the corporate income tax being passed on to the consumer. When the corporate tax drops to 9% there is room for a 13% drop in prices, which should occur within 90 days. Further, the burden of the corporate income taxes falls 2/3 to labor and 1/3 to capital in the form of lower wages and profits, respectively. With more money left in the hands of businesses and consumers, there will without a doubt be a dramatic increase in market demand, production and competition. This means that prices will decrease, and likely absorb most, all, or even more, of the 9% sale tax. With businesses having less and fewer taxes to pay themselves, they won't have to charge as much. In the long run, economist predict that prices will decrease dramatically. Again, it's only on the dollars you choose to spend on new items, and everyone gets an instant raise in their paychecks due to the elimination of the 15% payroll tax.
The employees only pays 7.65% of the payroll tax: The employees pays the employer's 7.65% as an embedded cost of the price of goods that they buy. It's a fairly well studied issue, and the employer's share of the payroll tax is actually a reduction to an employee's compensation. Under 9-9-9, the employee will benefit from reduced prices and/or an increase in hourly wages. In competitive markets, most of employer share will flow to workers in the form of higher wages.
9 responses to 9 false attacks on the 9-9-9 plan
Herman Cain 9-9-9 Plan Sales Tax Calculator
Raising Cain 2012 9-9-9 Calculator
Nerd4Cain 9-9-9 Calculator Herman Cain on Education
(Educators for Cain) Mr. Cain believes in getting the federal government out of education and putting control of education back in the hands of those closest to the kids, (parents and teachers!) Ethanol - Herman Cain interviewed on Jason Lewis
Herman Cain - Energy Independence Strategy
Energy independence requires bold goals bold leadership
Obama's energy policy blame at the pump Press release 05/26/11
2) Cain was appointed as a Class C director of the Kansas City Fed board in 1992. (There are...A, B, and C class directors. Class C Directors can't hold stock in any banks, nor may they work for one.) Class C directors meet every two weeks and are citizens elected based on merit in their particular field. In Cain's case, his expertise was business. In that capacity, Cain provided advice to the president of the KC Fed (the conservative Thomas Hoenig) about conditions for private, non-bank businesses. In other words, Class C directors report to the Federal Reserve about how Fed policies may be impacting their industry
3) Herman Cain is not against auditing the Fed.
4) Herman Cain is an advocate for a smaller govt & he believes that oversight should be done through Congress. Congress already gets testimony & regular reports on the FED, & any oversight/audit would be an extension of their duties. Specifically, the banking committee could perform this duty without the creation of a new govt (committee or presidential commission). Also, Mr Cain has stated that he is a supporter of Congressman Paulís bill for congressional oversight. I would encourage you to watch the following videos so you get an in depth understanding of Mr. Cain's position:
Herman Cain talks about the Federal Reserve
Herman Cain on the free market, bailouts, and subsidies
Herman Cain on the Fed and Economic Stimulus
Herman Cain Discusses the Federal Reserve
The Fed Question
5) How the Fed is set up and works: The Fedís Congressional founders recognized the dangers of giving the government direct and sole control over the printing of currency. Because the public, including bankers, did not trust the politicians with the printing press, one-third of the seats on each board responsible for the oversight of the 12 Federal Reserve Banks are held by bankers. Bankers within each Federal Reserve District were given the opportunity to elect several local directors. However, two-thirds of the directors on a Reserve Bankís board are not permitted to be bankers.
While the public did not trust politicians, the politicians also recognized the risk in giving control to bankers. At the time of the Fedís founding, the nation had already made two attempts at a central bank, and neither one was successful because they were privately held institutions. To block private interests from controlling the central bank, a government agency known today as the Board of Governors was created and given broad oversight for the entire System. The governors are appointed by the president of the United States and confirmed by the U.S Senate.
Among their numerous responsibilities: The governors appoint one-third of the directors of each regional Federal Reserve Bank, including both the chair and deputy chair of each board. With this structure, the Federal Reserve has the most grassroots, representative structure of any federal entity, because the Washington based Board of Governors, a federal agency, has the benefit of 12 regional Reserve Banks that are located on ďMain StreetsĒ all over the United States.
6) FED AUDIT LINK
7) MORE GENERAL INFO ON THE FED
8) Herman Cainís Service as a Director of the Federal Reserve Bank of Kansas City
Herman Cain: Obama Will Pay in 2012, Voters Aren't Stupid
Afghanistan, Foreign policy, Energy Herman Cain in Iowa - 2 of 3
Herman Cain on Israel "Our Friends Need to Know They are our Friends"
Herman Cain: Obama Will Pay in 2012, Voters Aren't Stupid
Herman Cain DISMANTLES President Obama's Foreign Policy
Herman Cain: Obama Will Pay in 2012, Voters Aren't Stupid General Overview of Core Values (Click the interview link to hear the interview)
General Approach to Governing:
Herman Cain to Obama at CPAC: "U.S. Will Not Become U.S. of Europe on our Watch"
2011 NRA Annual Meetings - Herman Cain - Celebration of American Values Leadership Forum
Past commentary 1
Past commentary 2
Herman Cain on Cavuto Tells What's Wrong With Obama's Speech on Healthcare
Liberal Confronts Herman Cain!
1. Secure the Boarder.
2. Enforce the Laws we already have.
3. Promote the Path To Citizenship we already have.
4. Empower the States to deal with the 12-20+ Million Illegal Aliens already here.
The Medicare Program turns away more people for simple procedures than private industry. (Check out page 5, Denials table). So, the system needs to be FIXED.
As you can see, Cain is simply repeating what the pollsters are already saying.
I think that the PATRIOT Act is about 90 percent right on. I can't delineate to you exactly what I would want to change, but here again, I would rather err on the side of caution and protection, rather than worry about that ten percent that I might have a problem with. Perfect legislation doesn't exist. But I'm happy with legislation that's 90 percent right on, especially if it's going to protect the people. HermanCain.com
State Facebook Groups Q&A
I asked him how he feels about gun control and he said,"If a bill comes across my desk as president, that hinders Americanís right to bear arms, I would veto it in a second." Hmmm I liked that! He didnít even look nervously around and start to sweat. He was straight forward and looked me unwaveringly in the eye when he said it.
Second amendment -Interview
Herman Cain on Second Amendment and Abortion
Presidential Series - Part #2: Herman Cain... He Gets it Right on the 2nd Amendment!
Posted on May 22, 2011 by 2ndAmendmentright.org.
youtube Behind the Mosque Story
Legally speaking, if they choose to build a religious facility, the local government has to approve said facility before it can be built. During this process, the local citizens have the right to voice their concern or support for said facility. If the citizens have an issue, they have every right to voice concern. And the citizens have every right under law to attempt to stop it even if the council approved it. Mr. Cain has never said that he would do anything unconstitutional to stop a mosque. He has never said that he didn't support peaceful Muslims. He said that he felt that a community has the right to say NO to a mosque if we feel that it's going to bring sharia law to the area. It is neither bigoted nor hateful.
Separation of church and state argument "Our Constitution guarantees the separation of church and state," Cain said in an interview with Chris Wallace on 'Fox News Sunday.' "Islam combines church and state. They're using the church part of our First Amendment to infuse their morals in that community, and the people of that community do not like it. They disagree with it."
Herman Cain explains why he said he wouldn't appoint a Muslim to his administration.
GB 5-24 Herman Cain on Appointing Muslims
ORIGINAL INTERVIEW: THE REST OF THE TRANSCRIPT - Herman Cain: " There is this creeping attempt, there is this attempt to gradually ease Sharia law and the Muslim faith into our government. It does not belong in our government. This is what happened in Europe. And little by little, to try and be politically correct, they made this little change, they made this little change. And now theyíve got a social problem that they donít know what to do with hardly.
The question that was asked that "raised some questions" and, as my grandfather said, "I does not care, I feel the way I feel." I was asked, "what is the role of Islam in America?" I thought it was an odd question. I said the role of Islam in America is for those that believe in Islam to practice it and leave us alone. JUST LIKE CHRISTIANITY. WE HAVE A FIRST AMENDMENT. And I get upset when the Muslims in this country, some of them, try to force their Sharia law onto the rest of us. (NOTE: In other words, Muslims should practice just like Christianity. If the Bible/10 commandments cannot be in our courtroom, then the Quran/Islam cannot be injected either)
Here are just a few instances to show that there is a push for Sharia Law in US:
NON HERMAN CAIN - HIGHLIGHTS PROBLEM -Interview: Muslim Cleric in Favor of Sharia Law Plans WH Protest
Cases involving Sharia Law in the US:
Case 2 Heres the Chilean model Herman Cain was talking about.
Cato Here is his commentary on this in Feb, 2009. Q&A
GB 5-24 Herman Cain on TARP
Everyone with even a basic business acumen supported TARP in the beginning. Our entire financial system was about 20 hours from complete collapse. TARP actually saved us from the precipice. Yes, we all had problems with moral hazard, and Herman Cain is NO DIFFERENT.
In fact he has spoken out AGAINST how the government handled TARP. BUT in the time of crisis, there are those who just point fingers at why we got there, and there are leaders who do the things to bring us through. ...After receiving $7.4 billion in TARP repayments on March 30, 2011, the Treasury has now received $251 billion from banks participating in various bailout programs, which is good for a $6 billion profit from the $245 billion originally handed out to banks. The Treasurey Department now estimates that bank investments under TARP will ultimately NET taxpayers roughly $20 billion in profit.
TARP EDUCATION: The financial crisis & subsequently the need for TARP was about as real as real could be. The problem is that most of us haven't been presented with the magnitude of the problem. Please take a look at this timeline so you understand the series of events.
The financial crisis actually began in 2007, but the events of Sept 2008 was the apex of the problem. Also, I would encourage you to read the full article titled "Eight Days Leading Up To a Financial Crisis." You will see just how badly the financial situation had deteriorate, and why our government reacted. America was truly perched on the edge of an economic abyss:
Anatomy of a Meltdown
The Death of Kings (See Economic Vision above)?
What is 9-9-9?
A 9 percent business flat tax - Gross income less all investments, all purchases from other businesses. And no double taxation of dividends A 9 percent individual income flat tax - Gross income less charitable deductions A 9 percent national sales tax - This significantly expands the tax base which helps everybody. Applies only to new items. Used items are not taxed.
2) PHASE 2: Move to the FairTax plan.
Under this kind of tax, federal income tax would be eliminated and instead a consumption-based tax would be imposed. That means people would pay no income tax, but pay higher sales tax on goods and services.
Herman Cain on the Fair Tax
Herman Cain Rebuts Misleading Ad Against FairTax
Herman Cain - THE FAIRTAX REVOLUTION
Herman Cain Explains the Fair Tax
Fairtax for Dummies Series - Is consumption a reliable source of revenue?