What so many detractors of Cain's plan fail to realize, is that it's politically impossible for Congress to raise a tax rate that affects EVERYONE.
That is one of the beauties of the 9% flat income tax portion. It's virtually untouchable by Congress. Same with the 9% sales tax. You can't raise it for just some of the people, while leaving your friends unaffected.
Those two pillars of Cain's tax plan strip the power to punish or reward certain constituencies from Congress forever. It completely tilts the balance of power back toward The People, which cannot be seen as anything but a vast improvement in the way our system of government operates.
Isn’t that already happening, though, with the supposed “exemption for the poor”? Obviously that only affects the income tax, but I still see seeds of the possibility of class warfare through taxation there.
Also, given recent history, what (aside from elections or outright bankruptcy) is to prevent Congress from just spending $2 trillion or more rather than raising taxes?
Oh well, as long as Congress exists, I guess we’ll have to accept some risk!
What so many detractors of Cain's plan fail to realize, is that it's politically impossible for Congress to raise a tax rate that affects EVERYONE.
Are you talking about something like the “Temporary Victory Tax” of 1942 levied upon individual’s net incomes to fund the war effort, and is still very much in effect to this very day? As I recall it started off with something like a 2 or 3 percent rate.
As to the sales tax which you seem to favor, it is self evident that such a tax is the darling of depots and political schemers who dream of a tax which may constantly be increased in such small increments, say a quarter of a percent at a time “to feed the starving children” which would avoid significant outcry, that the proverbial frog [the American Taxpayer} will eventually be cooked before attempting its escape.
JWK