Consumption has made our economy stagnant. We have been borrowing to consume and now that has come to an end. The solution is to save and produce more.
Then you’ll need a government that doesn’t inflate our money supply, dropping it’s value every year.
You’ll also need a government that doesn’t tax savings interest or capital gains.
And I really don’t see how Cain’s plan would do that. It’d help companies, but as for the individual saver... I just don’t see it.
My current tax bracket has me pay 15%. Sure my income tax rate would drop to 9%, but then I’d pay a 9% sales tax... equalling 18%. As a whole, I might save a bit more, as the 9% sales tax would fall on my consumption.
But then, what kind of consumption are we talking about? Is my apartment rent considered ‘consumption’, fit to be hiked an additional 9%? I *AM* buying the apartment month by month, you know...
Same for food, electricity, gas, utilities, sewage, trash collection, internet, cable, phone.
Will these rise an additional 9%?
Or is it on the more traditional point of sale transactions?