There are five things that I would do.
Number one and that is lower corporate tax rates from 35 to 25 percent. We're the only country in the world that has not. What are we waiting on? This is why we're losing so many businesses and so many jobs.
Lower personal income tax rates.
Lower the capital gains tax rate to zero. Free up investment in this country. This is how you create jobs.
Suspend taxes on repatriated profits. It's been estimated that nearly a trillion dollars are held by multinational corporations in other countries. So the liberals' attitude is if we can't get a piece of it, we're going to leave it over there. I call this low hanging fruit...low hanging fruit. Take it to zero. Not 5.25%, which is what it was back in 2003 when George Bush was able to get this done for a limited period of time. Nearly $350 billion came back into the economy. It is now estimated that nearly a trillion dollars will come back into the economy.
And then the next one is give workers a full 6.2% payroll tax holiday for a year and employers.
These items, folks, are called direct stimulus because we keep the money, we spend it, we save it, we grow our businesses. That's how you get the economy going.
And the fifth leg of that is make the rates permanent. We've go to remove this uncertainty that's hanging over this economy, which is bogging us down.
Now that would be what I would propose to get passed in the first six months. And then during that time while people are seeing how well this is working — and there are plenty of studies out there that says these measures will work — liberals simply don't want them to work. Then in the second two years — During the first two years I would be educating folk on the importance about the Fair Tax, so we would replace the entire tax code with the Fair Tax.
I got a question today that just absolutely shocked me from one of the reporters. He says, Mr. Cain, I have been hearing about the Fair Tax for ever and it never seems as if its going to go anywhere. He says so why would you want to take on something that's going to not happen, that's going to be an impossibility. I just smiled and said, sir, you don't not do what's right because it's hard to do. And if the Founding Fathers had had that attitude guess what? We wouldn't be here today. Just because it's difficult, it doesn't mean you don't do it. I know it's going to be difficult, and this is why I'm not going to introduce it the first two years. We've got to educate the public because it is, has been demagogued, lied about. And if the American people know the truth, they will support it, and they will demand it. This is how you get something like that passed.