Herman Cain on Corporations

Excessive regulation drives up prices; market self-regulates

Alleviating the burdens of cumbersome regulation would be an immediate boost for our weakened economy. It would signal to businesses and investors that the government intends to maintain conditions that allow for them to thrive, not to bog them down with additional costs they must inevitably pass on to their consumers. No one is arguing for lead-based paint in toys for kids or unsafe food. We just want reasonable regulations that cut down on bureaucracy and help businesses succeed. And ultimately, the free market, aided in part by the watchful eyes of investors and consumers, will regulate itself.

When was the last time a poor person gave you a job?

The federal stimulus funds did nothing to stimulate the economy, Cain said. As president, he would reduce the corporate tax rates from 35 to 25 percent, take the capital gains tax to zero and suspend taxes on repatriated foreign profits.

"Lower taxes do stimulate the economy," said Cain. "It's not rewarding the rich. When was the last time a poor person gave you a job?" He also would replace as a second phase the tax code with a national sales tax, describing it "as simple and fair."

Lower corporate tax rate to 25%; and capital gains to 0%

He thinks he can turn around the US economy and create jobs with his 5-step plan:
1. Lower the corporate tax rate to 25% from 35%. Cain said the US is the only country to not have lowered the corporate tax rate in the last 15 years
2. Take the capital gains tax rate to zero. Cain said it would encourage investments in US businesses and create jobs
3. Take the tax rate on the repatriation of foreign profits for US companies to zero. Taking away that tax would encourage investments in US businesses and create jobs
4. Cut the entire 6.2% payroll tax for workers and employers for 1 year. Cain said it would give American workers a 6.2% pay raise and "guarantee" that the US economy grows faster. Cain believes smart tax cuts like these are self-financing, meaning they'll pay for themselves by stimulating the economy and raising the tax revenues
5. Make the tax rates permanent or indefinite. Cain said uncertainty on tax rates is "killing investments" in the US economy.