Posted on 10/15/2011 3:46:42 PM PDT by justsaynomore
Art Laffer (the originator of the Laffer Curve, and inspiration of Reagonomics) breaks down Herman Cain's plan
(Excerpt) Read more at video.foxnews.com ...
BFL. Thanks for posting ;)
I trust his thinking and economic savvy.
There you go.
30 years ago Laffer was a Reaganite. Laffer also admits to being a Clintonite, twice voted for BillyBoy and a Democrat on social issues, that means he’s pro-choice! Laffer admits to getting inspiration for the Laffer Curve from John Maynard Keynes among others. When the smart economists were warning everyone about the impending economic and financial crash. Laffer was in denial. Laffer hasn’t shown good economic judgment for years. His support for Cain’s 999 tax plan is just the latest example of his being out of touch with reality.
The part of the idea I like the best is that even those that now are getting a free ride have to pay something.
Freedomworks has done an analysis [LINK]on Cain's 999 Tax plan and they say:
Mr. Cain's 999 plan is on the right track with its goal of a lower, flatter, simpler, fairer, more transparent tax system. Nine percent would be a wonderful top rate for the income tax, compared to today's 35% top rate. And let's face it, abolishing the payroll tax and the death tax would simply be awesome.
But adding a national retail sales tax on top of the federal income tax (even a flat tax) is a bad idea, because it creates the infrastructure for a federal-level, European-style VAT.
And if Cain's 9% personal flat tax failed to remain flat (as happened with Ronald Reagan's promising but ultimately failed 1986 tax reform), we would end up with the worst of both worlds: a confiscatory income tax and a job-crushing VAT.
Paradoxically, then, if you want higher taxes and permanently bigger government, one way to get there would be to support Herman Cain's 999 plan!
Two rousing cheers, for boldness and imagination. And one bronx cheer, for a dangerous lack of foresight.
The part of the idea I like the best is that even those that now are getting a free ride have to pay something.
Clearly you either didn't watch the video or you didn't pay attention, when specifically asked about the "regressive" nature of the tax, Laffer said that those getting a free ride will still get their free ride.
Interesting info. Thanks.
See my new tagline.
I'll repeat myself from another thread, since this post has been repeated on other threads:
Believe me, I have no quibble with mashing the national sales tax proposal as hard as possible to make sure we are not getting into something terrible. So far, I'm still open to the NST and see several positive things it would do for our country and our continued freedom.
Criticisms such as the one above strike me as sooooo 20th century.
State and local governments, and online retailers, manage to collect sales taxes everyday and this process is getting easier, cheaper, more efficient and more failsafe all the time.
Heck, I've lived in Europe and paid a lot of VAT and I can tell you the European VAT system is -- on a good day -- in the 19th century. They had a VAT when merchants had to add up pfennigs with a stubby pencil and stuff boxes full of receipts for the VAT man. IOW, their VAT bureaucracy is largely an artifact of when it began and, then, the lethal inertia of all bureaucracies.
We won't be needing to repeat that here.
Amazon collects sales tax in a whole bunch of states, at all kinds of different rates, and I don't see an Amazon Sales Tax Department taking over the world and choking our freedom.
Further, the European analogy breaks down because the Europeans (even when they had their own countries, before the EuroZone) did not have anywhere near the political means of resisting tax increases, nor did they, frankly, have the mentality to resist.
The fact is they are peoples that have *never* been free; Socialism is the best deal they've ever gotten in their entire history. Americans, on the other hand, are the only people in the world who have never been anything but free. That affects how we fight. (A very interesting piece by a German economist related to this idea is here: Obama's Misguided Approach: America Has Become Too European.)
As an aside, I was in Germany when the government raised the gas tax by a huge percent, seemingly overnight, and no one said a word. I remember thinking, good grief, what a difference between Germans and Americans -- if a state tries to raise its sale tax by a penny, much less by 75%, there's all hell to pay.
Which is a very salient point as to how any national sales tax would be kept in check here.
“...Laffer said that those getting a free ride will still get their free ride...”
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I’m calling you out on this.
You are a blatant liar.
Laffer never says any such thing in the video.
I’m not sure what you’re referring to, but the point of the national sales tax is that everyone will pay it.
Sure, they may eventually exempt a basket of basic goods from the tax (many states do this with their sales taxes, or they tax a list of “necessities” at a lower rate).
But anyone who buys stuff will be paying Fedzilla taxes.
One of Cain’s supporters has come up with a tax calculator. Check it out...
http://raisingcain2012.wordpress.com/about/
Laffer admits the 9-9-9 will likely become a 20-20-20 plan in the future yet feels 9-9-9 is needed now to collect “much needed revenue”. He flat out stated that there is nothing that can be done to prohibit future Congresses from having yet another tax stick to bludgeon Americans with.
I am ashamed to look at the lack of vision in today’s American politicians and dignitaries.
Here is the vision that combined with repeal of the 16th Amendment will be lasting and enduring as a fundamental revolutionary reform that is in line with what the original Founders intended for the United States provision for taxation and at the same time solves the historical regressivity problem of indirect excise taxes and solves it in a brilliant innovative way by means that were not available historically:
http://www.fairtax.org/site/PageServer?pagename=about_faq
Study Study Study and Ask Questions! Do not let the naysayers lead you to think you are wasting your time. Determined Americans can make this happen.
Cain’s plan will lead to both an income tax and a national sales tax with VAT variations. Cain says he plans to scrap the tax code....do not swallow this poison! He will not be able to do that as long as the 16th Amendment lives.
Cain is a poor visionary, the wrong person for our time.
However, Romney or Perry or any of the others will not do any better. The FairTax is a People movement that will lead from the grassroots and make politicians follow the people rather than vice versa. It is said that only 3000 passionate and determined FairTax supporters are needed in a Congressional District to turn its Rep around.
Study Study Study and arm yourselves with knowledge. Don’t swallow the 9-9-9 poison and work for fundamental Constitutional reform in line with the Founders principles under the vision of the FairTax revolution. Be ready to make your move when the crisis leads to capitulation.
One of Cain’s supporters has come up with a tax calculator. Check it out...
http://raisingcain2012.wordpress.com/about/
FYI -
Herman Cain will his 9-9-9 plan and more with Governor Mike Huckabee tonight at 8 pm on Fox News.
Thanks for an intelligent and civil post.
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