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.

[editor-surveyor]

The “fair tax” or any other sales tax would cost us millions of jobs due to the collapse of small businesses, and the reluctance to buy that would be generated.

Its just poorly thought out.

[casablanca]

Nonsense.

[editor-surveyor]

>> “and used goods would not be levied sales taxes.” <<

.
So eat used food, and wear used clothes, and drive used cars.

There goes the economy!

[Revolting cat!]

[garbanzo]

My question is more along the lines of what difference does it make if Congress raises, say $1 trillion in income tax hikes or $1 trillion in sales tax hikes? It’s still coming out of your pocket either way. To me at least, raising one income stream and lowering another doesn’t sound all that bad.

[Dr. White]

Because if they can tax you through both, they will tax you through both.

[garbanzo]

I’ll give this one last try...does it matter to you if government raises $1 trillion in income taxes alone , $1 trillion in sales taxes alone, or $500 billion in income taxes and $500 billion in sales taxes?

[Dr. White]

Does it matter to you if government raises $1 trillion in income taxes alone , $1 trillion in sales taxes alone, or $500 billion in income taxes and $500 billion in sales taxes?

Yes, because the total is not the only relevant component.

Another relevant component is the ways in which a person can be taxed.

Right now, a National Sales Tax - whether via 999 or the "fair tax" - is not one of the ways in which a person can be taxed, and won't be unless Republicans endorse it.

Is that clear?

[Republican Wildcat]

I don’t agree...there is 0% chance they could raise sales taxes and it not be noticed immediately and cause an outcry. With tax withholding and other ‘hidden’ taxes, not so much, and it can even be made to seem like someone else’s fault.