Godfather of Supply-Side Economics Supports Cain's '9-9-9' Plan

Human Events ^ | 10/12/11 | Tony Lee

[justsaynomore]

As businessman Herman Cain surges atop state and national polls and becomes a top-tier presidential contender, his signature "9-9-9" plan, which calls for a nine percent tax on income, a nine percent national sales tax, and a nine percent corporate income tax, has come under scrutiny from the right and the left.

Famed supply-side economist Art Laffer told HUMAN EVENTS that Cain's "9-9-9" plan was a pro-growth plan that would create the proper conditions for America's economy to grow and thrive again.

"Herman Cain’s 9-9-9 plan would be a vast improvement over the current tax system and a boon to the U.S. economy," Laffer told HUMAN EVENTS in a statement. "The goal of supply-side tax reform is always a broadening of the tax base and lowering of marginal tax rates."

Added Laffer: "Mr. Cain’s plan is simple, transparent, neutral with respect to capital and labor, and savings and consumption, and also greatly decreases the hidden costs of tax compliance. There is no doubt that economic growth would surge upon implementation of 9-9-9."

Laffer also said that "such a system provides the least avenues to avoid paying taxes, yet also maintains the strongest incentives for work effort, production, and investment."

At the GOP presidential debate in New Hampshire on Tuesday, Cain's plan received criticism from many of the candidates on stage.

Former Utah Gov. Jon Huntsman said that Americans needed a plan that was "doable-doable-doable" when asked his opinion on Cain's "9-9-9" plan.

Rep. Michele Bachmann (R.-Minn.) said that the "9-9-9" plan was not "a jobs plan," but was rather "a tax plan." Bachmann also complained of Congress getting another revenue stream from the plan and said, "you turn the 9-9-9 plan upside down, and the devil's in the details."

Former Pennsylvania Sen. Rick Santorum said that the "9-9-9" plan was not a passable solution.

Further, Cain has been criticized from the left as well, as charges that his "9-9-9" plan is regressive have been made, charges that Cain has often refuted by citing that the payroll tax would be eliminated under his plan and used goods would not be levied sales taxes.

As Cain's profile increases and poll numbers rise, his opponents will attack him more fiercely over his "9-9-9" plan, but it looks like Cain has found an ally in Laffer, an economist who is more than respected by fiscal, pro-growth conservatives.

[GSWarrior]

My sense is that any kind of tax reform will be like turning over a rock.

Do we really expect politicians and special interests to just merrily go along without a tooth-and-nail fight? Government interests will try to kill this at every opportunity.

If a spotlight is shined on the depth of institutionalized government handouts and special interest favoritism the government will not come out looking good at all.

Large corporations lobby for the government to have more power, and in return the government enacts laws and regulations favorable to large corporations. Why is all or most of the focus on "evil capitalists?"

The Occupiers are yelling at the wrong people.

[Brown Deer]

"Herman Cain’s 9-9-9 plan would be a vast improvement over the current tax system and a boon to the U.S. economy," Laffer told HUMAN EVENTS in a statement. "The goal of supply-side tax reform is always a broadening of the tax base and lowering of marginal tax rates."

Added Laffer: "Mr. Cain’s plan is simple, transparent, neutral with respect to capital and labor, and savings and consumption, and also greatly decreases the hidden costs of tax compliance. There is no doubt that economic growth would surge upon implementation of 9-9-9."

The Laffer Curve: Past, Present, and Future

[justsaynomore]

I agree. Doesn’t we shouldn’t try.

[Absolutely Nobama]

Well, that does it....

Herman Cain is my guy. Hands down, without a shadow of a doubt. Mind’s made up.....

Be afraid, Chairman Obama.....Your Reign of Incompetent Terror is about to end.....

[GSWarrior]

Tax reform is the single best thing we can do to bring our country back to prominence, IMHO.

Why is it that virtually no elected Democrats are pushing for tax reform, and that many if not most elected Republicans seem to be cool to the idea?

[Absolutely Nobama]

I understand your concern, but-—

1. Prices would drop-— When companies pay less in taxes, the price of goods go down. The elderly would benefit from this, even with the sales tax.

2. The 9-9-9 Plan would have those being paid “under the table” pay taxes. In other words, Ricardo Perry’s illegal alien friends would start paying for their own welfare.

3. 9-9-9 is certainly better than Myth Rommney’s 57 point plan, whatever that is.

4. Art Laffer approves of it, and the last time I checked, he knows a thing or two about helping to create a vibrant economy.

I’m not saying this to be combative, but I think this plan would work.

[Bruce Campbells Chin]

Every time they may try to raise 9-9-9 to anything more than 9-9-9 it would affect every American.

The argument "but what if they raised it" could be applied to any tax system, including the current one. So I don't understand why that argument is believed to hold particular sway with respect to the "9-9-9" plan. If anything, the fact that the tax based for the sales tax includes everyone would make raising that tax in particular much harder than raising the others.

If anything, the real risk in terms of the numbers being adjusted would be for the sales tax to be slowly reduced over time due to political pressures, with the inocme and business taxes being raised. But since that would mean nothing worse than a move back towards the current system, I don't see the downside.

[editor-surveyor]

You’re not being analytical.

The sales tax would cost us millions of jobs through small business shut-downs, and cutbacks.

There is nothing to prevent future congresses from simply jacking our taxes to european levels.

Art Laffer has had senile dementia for decades. He was a Clinton supporter. His sole significant contribution was his irrefutable proof that high taxes reduce revenues, as low taxes boost them.

Cain’s plan would ultimately be very high taxes. There is nothing to prevent it.

We need a constitutionally mandated flat tax with a ceiling and a minimum. It must also include an absolute assumption of innocence in all legal proceedings at all levels.

[bolobaby]

Sigh. Not true.

Tell me the exact percent you pain in income taxes last year. What about in 2008? 2004? 2000?

I guarantee that the percentage differs from year to year. That’s because Congress surreptitiously tinkers with the tax code.

Can you tell me the last time your specific tax rate moved, and what was the move?

Now - if you were paying 9%, year over year, it’s pretty easy to track. And if someone tries to change that number, you will know the exact date and details of that attempted move.

So I can’t see how you can possibly say my arguments are more of a straw man that Dr. White’s. That’s disingenuous.

[Graewoulf]

Way to go Art Laffer by saying: “and also greatly decreases the hidden costs of tax compliance.”

[Dr. White]

I don’t understand why you’re okay with Congress having the power to raise income tax rates to 90%

Interestingly, I never said that.

but the power to raise sales taxes from 0% to 9% is somehow just plain wrong?

Yes, because no such tax exists now and should not.

You are basically saying that since Congress can raise income taxes now, might as well give them a sales tax that they can raise as well.

[casablanca]

Go to his website. 999 is a stopgap until we repeal the 16th and pass the Fairtax

[Absolutely Nobama]

“There is nothing to prevent future congresses from simply jacking our taxes to european levels.”

They’ve already done that. This would be a dramatic cut.

[editor-surveyor]

It may be a cut at the beginning, but it would inexorably lead to a huge increase.

[editor-surveyor]

You’re full of talk, and devoid of logic - Emotional to the max.

[bolobaby]

????????

Wow - that point just nailed YOUR case!

????????

[editor-surveyor]

You never learned how to lose gracefully, have you!

[Pelham]

“4. Art Laffer approves of it, and the last time I checked, he knows a thing or two about helping to create a vibrant economy.”

Maybe not:

http://www.youtube.com/watch?v=lYkFYdLTTw8

but I like Cain anyway.

[bolobaby]

Ah, yes - the last resort of someone who is unable to make a coherent, logical defense of their position: throw around insults.

You’re clearly not worth any more of my time.

/ignore editor-surveyor

[yup2394871293]

Because 100% of the people are now PAYING THE DAMN TAX. Have You seen what happens when welfare checks don’t go out in time. Also it would required two thirds vote not just majority.

You might want to pull out your barf bag:

Bangor Daily News: Cain’s ‘9-9-9’ tax plan hits poor, helps wealthy, experts say

I don't think politicians will ever stop tinkering with our tax code. Liberals think that the wealthy should pay all the taxes and anything else is unjust, to say nothing of unfair. Tax reform is certainly needed, but Cain's leakproof plan will last five minutes if he gets elected president. I hope he's in it for the long haul, knows who his friends are, and has a backup plan when the lefty establishment really goes on the attack. As far as taxation goes, the 16th amendment was the first levee to burst. There are no quick or elegant fixes.