This is a rush transcript from "Your World," August 19, 2011. This copy may not be in its final form and may be updated.
NEIL CAVUTO, HOST OF, “YOUR WORLD”: All right, with reported mass layoffs coming at Bank of America today, Herman Cain says it really time for massive tax cuts to counter them. The Republican presidential candidate opening his New Hampshire headquarters today.
He joins us now from Manchester.
Herman, obviously, this layoff more distressing news, one of the reasons why we see big banks lowering their forecast for growth in this country. You jump-start it how?
HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: Yes.
Neil, I have a plan. I released my plan yesterday, because things have literally gotten out of control. And, quite frankly, the American people can't keep waiting. The president went on a tour, came back, said he needs another month in order to put together another speech. The American people are sick of speeches.
And because things have gotten as bad as they have as quickly as they have, I have developed with my team an even bolder plan than I had talked about before right here on your show. Originally, I talked about eliminating capital gains tax rate, taking the top tax rates to 25 percent for corporations, as well as individuals, as well as zero tax on repatriated profits and making them permanent.
That is not enough given the situation you're facing now. Now I am proposing our extended plan, which involves a business flat tax of 9 percent, a personal flat tax of 9 percent, and a national sales tax of 9 percent -- nine, nine, nine.
That would expand the tax base, which we badly need to do, as well as give us a platform for eventually establishing empowerment zones for a lot of the cities like Detroit that are really, really suffering, as well as it gives us the platform to eventually get to phase two of my plan, which is totally replace the current tax code with a FairTax, which is a national sales tax.
This plan will work. It has been well-researched, well-studied by some of the best-known economists and economic thinkers in this country, many of whom I am not at liberty to mention their names. This is solid and its revenue-neutral.
CAVUTO: Well, this comes in the same week that started with Warren Buffett writing in The New York Times, you probably know, Herman, that one quick way to start addressing and solving this problem is to have the rich cough up more, that they should pay more in taxes, that they -- and he talks about himself as well -- have gotten a free ride, and that he is willing to pony up more, and so should the rich.
What do you say to that?
CAIN: I think that if Mr. Buffett wants to cough up more write a check and send it to the government.
Even if you were to take all of the money of the top 300 richest people in this country, Neil, it is still would not solve the problem. One of the things that you know I talk a lot about, make sure we are working on the right problem. Just taxing the rich and playing the class warfare card is not solving the problem.
We need a broader tax base and bold solutions. And that is what to plan is that I released yesterday. And I'm offering it to the president. I'm offering it to the members of Congress. I'm offering it to the super committee, because I'm going to be honest with you. I'm not optimistic that they are going to come up with anything, other than some of the same old rhetoric, the same old approach, who do we tax and how do we pick winners and losers?
The American people, Neil, they are looking for results, not blame. They are looking for responsibility, and not some more rhetoric about what we are going to do a year from now. We need it now.
CAVUTO: Well, we hear a lot of rhetoric. The president front-runner, whatever that means, Mitt Romney, through a bow to you by saying that you and he are the only ones with real hard business experience. Think he was taking a slap at Governor Rick Perry, the latest entrant.
Do you agree with that, that the others really don't measure up because at least when it comes to hard-core business experience, really you and Mitt Romney are the only guys that have it?
CAIN: I agree with Mitt Romney that he and I are the only two that have real hard business experience.
But my business experience, quite frankly, with all due respect to Mitt, is that mine is much broader and much more extensive. He was in the capital investment business. He had an opportunity to pick a business that he thought that he could turn into a winner.
CAIN: And he could ignore those that were failing.
My experience, I had to be assigned businesses that were failing or businesses that needed to be turned around.
CAIN: I have dealt directly with small businesses, as well as mega- corporations. So mine is much more extensive, as well as broader, much more than Mitt's.
CAVUTO: And, plus, you made -- you turned around things that you could eat, pizza, which is always very...
CAIN: That's right. I have actually made a pizza.
CAIN: I have actually made a Whopper. So, I know how to get closest to the problem when we want to solve something. This is how I...
CAVUTO: See, I like that food thing. I think that food thing is it.
CAIN: That's right.
CAVUTO: All right, the nine, nine, nine, the food -- you are on to something.
CAIN: That's right, nine, nine, nine.
CAVUTO: Herman Cain, always good seeing you. Thank you very, very much.
CAIN: Thanks, Neil.
CAVUTO: The presidential candidate Herman Cain, all right.
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