Cain's Tax Mutiny. New national sales tax on top of the income tax is a political killer

Wall Street Journal ^ | Oct 7, 2011 | WSJ Editorial

[Clairity]

The real political defect of the Cain plan is that it imposes a new national sales tax while maintaining the income tax. Mr. Cain's rates are seductively low, but the current income tax was introduced in 1913 with a top rate of 7% amid promises that it would never exceed 10%. By 1918 the top rate was 77%.

Part of Mr. Cain's appeal is his willingness to challenge political convention, and he certainly has with his tax proposal. Voters like that he isn't a lifetime politician but a successful business owner who has met a payroll and created jobs. But his endorsement of a sales tax on top of the income tax is a political gamble that would eventually finance an even larger entitlement state. Better to reform the devil we know—the income tax—than to introduce another devil and end up with ever-rising rates of both.

[Repeal The 17th]

There can be no national sales tax without a constitutional amendment.

[xzins]

Looks like the Wall Street Journal agrees with what I’ve been saying now for some time.

And the LESSER amount of money raised by 999 can only mean that Cain’s plan does NOT pay for his new Chilean Model Social Security.

Some will say that his plan gets rid of social security payroll taxes, but not so fast. He is ADDING a Chilean Model new deduction to pay that totals ANOTHER 10-20% of income.

So, it’s really 9-9-9 + (Chilean 10-20%)

Obama will eat his lunch.

[PSYCHO-FREEP]

Can’t you read? Cain’s triple 9 is not a FAIR tax. It is a surtax which is added on to the already ridiculous income tax currently in place.

There is no way you can claim otherwise.

[Absolutely Nobama]

In theory, to prevent Congress from ever taxing income again.

[Huck]

YEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEESSSSSSSSSSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Someone is FINALLY taking on Cain's IDIOTIC plan. Hopefully some other campaign reads this and RUNS WITH IT! FINALLY!

[marty60]

Americans are always looking for a quick fix.

Cains plan is not quick or a fix. It is just another road to higher taxation. Even Cain said the deficit would go up under his plan.

No thanks.

[FritzG]

Cain’s stated goal is to have a Fair Tax, do u not understand that?

[shield]

It is a VAT TAX

[McGavin999]

9% national sales tax (New goods only)
9% income tax
9% corporate tax
I would reckon the income and corporate taxes don’t have few, if any, loopholes. So, a family of 10 pays 9% and a family of 1 pays 9% and if your buy anything, new school clothes etc. you pay your state sales tax of 7 or 8% PLUS 9%. Again, if you buy 1 pair of jeans you pay 9% or if you buy 10 pairs of jeans you pay 9%. The rich, can go across the border and buy stuff in Canada or Mexico.

[shield]

This is what Dr. Wheeler said about Cain, yesterday: Will it be show time for Cain? Will one of his competitors ask him about the fatal flaw in his 9-9-9 tax reform plan? As Erik Erickson asks it:

"Given the Republican Party has a unparalleled history of being unable or unwilling to truly scale back the size and scope of the federal government and its creeping socialism, do we really want the Republican Party to be the party to introduce a national sales tax or VAT tax without first repealing the income tax?"

There's also the question of to what extent Cain is a jerk. He certainly is one towards Perry for whom he expresses a personal animus. He refuses to apologize for implying that Perry was somehow "insensitive" regarding the Niggerhead Rock smear, and told Hugh Hewitt on Wednesday (10/05) that:

"If it's one of those other candidates up there (who gets the nomination instead of him), I am going to support them 100%. If Governor Perry gets the nomination, I will still support him, but it won't be 100%."

Sorry, but this is simply being a jerk. Perry wants to repeal the 16th and 17th Amendments, and drastically reduce the size and power of the federal government via the 10th Amendment, while Romney as an establishment RINO will do none of this. But Cain could get behind the RINO and not the 10th Amendment guy?

His argument is particularly pathetic, misconstruing Perry's stand on illegal immigration. The hypocrisy is glaring, for, as the regional manager of hundreds of Burger Kings and CEO of Godfather's Pizza, he employed hundreds if not thousands of illegals. Has anyone ever asked him what actions he took to ensure the businesses he ran hired no illegals?

There's a lot to like in Herman Cain but there's a lot to give one pause as well.

[Prokopton]

I must say, this foolish proposal is exactly why I dropped all support for Cain in March of this year. He repeated this idiotic proposal then, and I could clearly see he was just not able to lead this country in any substantial way.

Well, the only other two potential candidates are both "good ol' boy" Crony Capitalists. I guess the status quo suits you, but most conservatives want a change.

[opentalk]

I like Cain, but not his national sales tax, it would be similar to Europe's VAT tax. Once imposed there would never be a chance to lose it, and the possibility another future administration would raise the percentage

A second big concern is his lack of concern over the Federal Reserve.

Two main Issues. His big pluses are strong character, capitalist and loves America.

[Ranjit]

You moderate party operatives are not even particular about the white house. I have a feeling that, you guys are using Romney as scape goat and win few senate seats. It is really sad that, we cannot get a conservative other than Romney & Perry. Wait and watch the way Obama sweeps the floow with Romney and Perry

[dinodino]

I know it’s the goal, but you assume that future Congresses wouldn’t increase taxes.

I am firmly opposed to the FairTax for this reason.

[2111USMC]

The writer creates a straw-man argument.

He automatically assumes that taxes on all levels will be increased in the future.

Until actual legislation is written, the premise of this article is meaningless.

[hobbes1]

Elimination of the witholding is more than enough.

* Unites all tax payers so we all pay income taxes and no one pays payroll taxes
* Provides the least incentive to evade taxes and the fewest opportunities to do so
* Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc.
* Is fair, neutral, transparent, and efficient
* Ends nearly all deductions and special interest favors
* Ends all payroll taxes
* Ends the Death Tax
* Features zero tax on capital gains and repatriated profits
* Lowest marginal rates on production
* Allows immediate expensing of business investments * Eliminates double taxation of dividends
* Increases capital formation. Capital per worker drives productivity and wage growth
* Capital formation will aid capital availability for small businesses
* Features a platform to launch properly structured Empowerment Zones to revitalize our inner cities
* We all know the Fed has tripled the money supply since 2008. They have been printing money out of thin air to finance the Obama spending machine. While true Fed reform that restores sound money may have to wait for my election, the best thing we can do now is to pursue policies that increase the DEMAND for dollars to help mitigate the risks associated with the increase in the supply.
* Pro-growth economic policies equal a strong dollar policy

[PSYCHO-FREEP]

Most of Cain's supporters who jumped from Palin to Cain, took the same blind rhetoric with them. When ever you read their posts, just remove the name “Cain” and replace it with “Palin”, and you have the exact same inflated, exxagerated hype.

Cain is just not all star Presidential material. He is a radio talk show host and political amateur who has never held a Government executive office, similar to a familiar Community Organizer who was supposed to be a Washington Outsider who would reform all of Washington. And we cannot afford another one of those to experiment on this economy, or this nearly broken system. No way, no how!

[McGavin999]

I really had to laugh watching them disect this on FOX today. The host says “Well of course YOU like it, instead of paying 35% you’d pay 9%) and she said “And all those people who are paying nothing will be paying their fair share” LOL!

[lewislynn]

Post after post after post...Your desperation is beyond funny it’s getting really ugly now.

[Huck]

He automatically assumes that taxes on all levels will be increased in the future.

Yeah, what a crackpot assumption! I mean, we all know the tendency of government is to take less and less and...oh wait. Nevermind.