Posted on 09/27/2011 1:36:16 PM PDT by xzins
Have you heard about 999? Sorry, it isn't a German Hausfrau admonishing her children. What is 999? It's a new tax scheme dreamed up by Republican candidate, Herman Cain. In his plan, we have a 9% corporate tax, a 9% income tax, and a 9% sales tax.
Here is the bottom line: 999 is one tax MORE than we now have. Argue all you like about the 9% rate, but know this, we are NOT now paying a national sales tax of 9%.
Please consider this. Governments love to tax. Governments love taxing so much that they will at times violate their own Constitution in their frenzy to find more tax money to fill their coffers. Fortunately, when that occurs, citizens do have some recourse in appealing to the courts the violation of their Constitution, as is the case of the individual mandate in ObamaCare.
Not so with the 999 of Herman Cain. The Constitution says that an income tax is acceptable. It speaks nary a word about a corporate tax, meaning that taxes not specifically forbidden are OK. That means a 9% sales tax can also be easily instituted by simple act of Congress.
Remember, governments loving taxes is a passion surpassing that of teenage boys loving teenage girls. They love them so much that our current income tax, once a percent or two of one's income, is now ranging into the high 30 percent. After all, they are Congress and the only thing preventing tax hikes is elections, and even they don't seem to prevent them awfully well.
So imagine that innocent looking 999 some day being 101010 or 121212 or even 303030. What's to prevent it? Absolutely nothing.
Without a Constitutional amendment setting those precise limits, or, in my opinion, an amendment that ends the socially manipulative income tax altogether and forever, those meek little 9's are very dangerous seeds planted that will grow and grow.
Therefore, there is no doubt about 999. America's response should be "Nein, nein, nein!"
What prevents them raising it? A ballot. And they would not be able to hide it would they?
Ask the average person how much they paid in tac last year and they’ll say “nothing, I got some back!”. They never think about how big their “contribution was”, just that they got a “return”.
What is the social tax now? Over 12% (Your employer could give you that money, but he has to give that half of it to the government on your behalf.
9-9-9 makes sense. God asks for 10%!!!!!
How about just 9-9? I really hate the idea of sales taxes. Really hate it. We not only need taxes of ALL kinds way reduced, but spending massively reduced.
The fair tax has always assumed the repeal of the income tax amendment PRIOR TO the enactment of the national sales tax. The fair taxers have always said it would be suicide to ever allow both to exist at the same time, because politicians can’t be trusted, and because elections lead to changes in leaders.
I’m in favor of the repeal of the income tax amendment, and the shrinking of government to its constitional role of defense, judiciary, and commerce.
We can do all of that with tariffs.
Even under the current corrupt tax system, if the Federal Government were TRULY cut back to Constitutional levels, the national debt could be paid off relatively quickly and taxes could be radically reduced. Unfortunately, taxation - and the subsequent unconstitutional redistribution of wealth is a form of control that politicians, especially Socialists, won't easily turn lose of.
It is a tax based on income. The deductions, or lack thereof, just determine what is income.
999 simply will not pass Congress - the last 9 - national sales tax would be added to the local sales tax of around 9 percent - so that’s as 18% sales tax to be paid by everyone, including the poor. I’d like 090 or 007.
You know what, xzins? You’re right. You won me over.
Let’s do nothing. [/s]
Just think how many accountants and tax attorneys Cain’s plan will put out of work.
Can’t have that, now, can we?
That’s what I said.
I didn’t advocate doing nothing. I advocated repealing the income tax first by constitutional amendment.
That’s not nothing. /s
It will put no more out of work than will repealing the income tax with an amendment that also institutes a sales tax.
Even if this is the greatest fiscal policy in the history of taxation, it would have to be implemented at a glacial pace or else the economy would go flying off the rails.
Any radical idea, be it liberal or conservative, throws the economy in disequilibrium, and causes the misery of unintended consequences.
That remark has become overused and it is untrue. People know when they look at their W-2 what they earned and what they took home.
With an amendment ending one and initiating the other.
Glacial is OK.
A national sales tax is a great idea because it’s entirely voluntary based on consumption.
I’d personally like to see the income tax phased out altogether, and if this is step one towards that goal, I’m for it. Show that a national sales tax IS viable with a hybrid system, then eliminate the income tax.
Do you have a link to the substance (the meat and potatoes — the small print) of the fair plan?
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