The "ease" of "9-9-9" disappears upon first glance and upon closer scrutiny, the idea that this can survive all process levels, seems shaky indeed.
Hopefully, this article will initiate discussion, and this thread will provide a polite forum for rebuttal, so in the end we all will have increased understanding.
One of the most important points of this article is the following (which IS true):
“There is no easy way out of this mess.”
I think wise adults understand this. We have decades of unchecked, often ineffective, bureaucratic growth which has insufficient oversight...that needs to be undone. We also have a large segment of the citizenry that is improperly educated with regard to the basic principles of this free nation, does not understand basic economic systems....and has turned its back on God.
We are going to need several good LEADERS in Washington DC who seek God’s help in turning the country around. We need to put a good president in the White House and we need to concentrate on the House and Senate...as well as our local leadership positions.
I still like Perry. I also like Cain. I like the moral principles of Santorum and the knowledge of Gingrich. The contributions of all are going to be necessary.
Husband and I think the FLAT TAX would be best. (Legal barriers can be amended to allow this.)
I’ve been self employed most all my life. When corporate taxes go up my prices go up. When fuel prices because of taxes increase fares for shipping that product go up which is added to the price of the goods shipped. If you doubt that think of anything you have ordered. Was there shipping involved? It’s the same for a manufacturer. When they order raw materials they have them shipped in, there’s a shipping cost. When they ship the finished product out, there’s a shipping cost. All of those costs are added to the price of the finished product.
Any tax on corporations or businesses is paid for by the consumer. To think otherwise or not take that into account is naïve at best. We need to keep that concept in mind when considering any restructuring of taxes.
All this does is give the Socialists an added tax source - VAT. They will not stick with a 9,9,9 plan. It will grow to 29,29,29 plan within a decade. In “bi-partisan” moves, Rinos and Dems it will launch it at 20,20,20.
Flat Tax is the only reform that makes sense. And end Fed sales tax.
Mr. Cain is not the one.
The biggest problem with this proposal is that it still retains the income tax. The income tax needs to go as it has been a constitutional nightmare. As long as you are forced to detail every aspect of your finances, there is no 4th or 5th amendment.
Williamson is right. Obama can run against this as a tax increase, and he can run against it as an unjust taxing of retirement money that seniors have already set aside as taxed money.
Any implementation of a 9% sales tax must be as part of a constitutional amendment that simultaneously (1) repeals the 16th amendment income tax, and (2) institutes a sales tax.
Otherwise, politicians will simply KEEP both taxes, and no amount of “educating” by “president cain” will get them to promote an amendment to repeal the 16th, much less ratify it.
It’s simple common sense.
See “Beware the 9’s of Cain” at http://www.freerepublic.com/focus/f-bloggers/2784516/posts
This is just evidence that Cain is a thinker and is willing to shake things up. That's good enough for me.
If he wants to overhaul the law, why doesn’t he run for House or Senate and bring this up there?
As it is it’s just a gimmick proposal he knows he can’t effect. The legislature wouldn’t dream of doing such a thing. But if we could get enough people like Herman Cain to run for House or Senate...?
(People like Cain, except that they don’t feel they must enter at the top.)
The author is doing exactly what libtard taxers do: assuming there would be little or no change in business or consumer behavior in response to changing tax systems.
Even supposing this assumption is correct, adding 500 billion annually to the federal deficit is far less than what ObaMao has done. To put in perspective, it is about 88 times the cost of one single failed solar boondoggle. It is about the same cost as ObaMao's mini Porkulus II proposal which would basically do no more than reward some of his union supporters through the next election cycle.
But economic behavior is not stagnant. Businesses and consumers would not just sit on 500 billion dollars less which they would send to Fedzilla, they would spend it or invest it. This would create more jobs and more tax revenue. It would also lower compliance costs by about (surprise!) 500 billion dollars by conservative estimates.
Now, whether Cain could actually get such a plan implemented or sold to a populace and bipartisan political class brainwashed with Keynesian economics is an entirely different matter, but it is a hell of a good starting point.
My personal opinion would be that we might end up closer to an 11-11-11 plan. Historically, tax receipts tend to be about 20% of GDP (give or take a couple of percent) no matter where we put the tax rates.
I suspect Herman Cain who is a math major is keeping Fedzilla's take minimal to allow states and localities to get some. He may also be using the optimistic end of the historical model The 9% income tax plus 9% sales tax does produce 18% in a stagnant model, minus 9% of what we save, invest or what is sales tax exempt. That difference would be made up in the 9% corporate tax, which is built into the cost of things we buy and, essentially, taxed again when we do so.
We need a Spending Reform in addition to a Tax Reform.