Next time some MENSA decides to harp on about 999, this will be my NINE point response:
Yes, it does put a new “pipeline” in w/o ditching the income tax. But its worth the tradeoff and here is why:
1) The IRS could be reduced by 99%, saving many billions. The tax form would be a single 1/4 sheet of paper, about the size of the old W2 forms:
Line 1. How much did you make _________
Line 2. Multiply Line 1 x .09 _________
Line 3. Send in total from line 2
2) Adding a sales tax yes, but eliminating the Capital Gains tax, FICA tax and Medicare tax for both employee and employer, the communications and other excise taxes, and the Death tax, and the double taxation of dividends. A fair tradeoff.
3) It expands the tax base to all individuals. No more freeloaders. My guess is the first 25K of income would be exempted from the 9% flat income tax.
4) A 9% corporate flat tax would be a world beater. The problem of shipping jobs overseas would be greatly reduced, if not altogether reversed
5) Art Laffer is behind this plan. IMO, one of the finest economists alive.
6) It would become infinitely harder to raise taxes. Not only for the reasons Cain mentioned in the debate, but more importantly, when raising a tax effects 100% of the population, Congress will feel the heat like never before.
7) It kills off the class warfare on taxes. So fools like Romney and Pelosi can’t ply their poisonous trade anymore.
8) It would force a major collapse or at least a major rejiggering of the WTO. They would rule it unfair, we’d tell the to *$#@! off
9) The entire cabal of tax lawyers, tax accountants, tax planners and IRS agents would have to find a new line of productive work instead of leeching off the blood of others.
+1 Like
I would admit that the IRS can downsize, but I still see 15k of their folks around to investigate people who will still try to sneak around the factual reporting. But I will caution you on two episodes that will come. First, the initial Xmas season will shock everyone with prices up by nine percent on gifts. Retail sales will decrease by twenty percent. Things will recover in two to three years as people get used to this. Second....sticker shock over new car sales will be a problem, and for an entire year....folks won’t be buying new cars because of the cost factor.
Good point! If some voters have no 'skin in the game', they won't care WHAT their Congressional representative does. If they know that their Rep. is moving to increase the Sales Tax that they're paying on everything they buy, they'll look much more closely at WHY.