But that doesn't mean Cain's plan is any more likely to have the rates raised than the current system. In fact, it is less likely because:
(1) Because it's not a "progressive" tax rate. A rate increase affects everyone. No more class warfare calls for raising tax rates.
(2) It's transparent. The instant tax rates go up, everyone knows about it.
The biggest problem I forsee is the temptation of congress to slowly reintroduce deductions for various things. But that's the major problem with the current system (which is so big and complicated nobody can actually say how many pages are even in the tax code).
Except that a plan for raising the rates on about half the people in the country is going to give the Democrats the 'class warfare' flag to use against the GOP. And don't think they won't be waving it for all they're worth.
The biggest problem I forsee is the temptation of congress to slowly reintroduce deductions for various things.
The biggest problem I see is getting the majority of people to vote for a man who has said they will raise their taxes.
[ The biggest problem I forsee is the temptation of congress to slowly reintroduce deductions for various things. But that’s the major problem with the current system (which is so big and complicated nobody can actually say how many pages are even in the tax code). ]
Excessive Laws/Regulations/Loopholes lead to selective enforcement which leads to the mess we are in right now.
What we really need is fewer laws and regulations and better enforcement of those laws that are left.
IMHO, the class warfare is already there in Cain's plan with the "empowerment zones".
He stated in an NPR interview that blacks would be most affected by the empowerment zones, as in Detroit.