Posted on 10/13/2011 11:02:38 AM PDT by justsaynomore
Art Laffer, a former member of Reagan’s Economic Policy Advisory Board and the man who created the Laffer Curve, has now come out and endorsed Herman Cain’s 999 plan, saying that it will undoubtedly be a huge boon to economic growth. This is very good news for Herman Cain:
HUMAN EVENTS – 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.”
Look who else likes Herman Cain’s 999 plan - Paul Ryan!
http://www.dailycaller.com/2011/10/13/paul-ryan-loves-herman-cains-9-9-9-tax-plan/
I just wish they would come out and show exactly what the breakdown would be for each $10,000 of income. I am sure some people would make out and some would lose out. SHOW US THE NUMBERS. Don’t get me wrong I support Cain 100% but I want to be sure people on social security would not be penalized.
Godfather of Supply-Side Economics Supports Cain's '9-9-9' Plan
It's really not that hard.
The 9-9-9 stands for 9% income tax on earners, businesses and corporations, and a 9% sales tax. There would not be a payroll tax any longer, but that doesn't mean Social Security or Medicare wouldn't be taken out. And the fact it broadens the base, it means more people are paying taxes making it more fair to everyone. The ultimate goal is to morph it into a fair tax. Instead of some segment of the population being hurt, it means all America will be treated the same. I don't see that as a down side.
The critics of 9-9-9 miss the point. We MUST have a dramatic restructuring of tax / fiscal policy so that the U.S. is competitive in the Global market. Yes there will be winners and losers in the short run under 9-9-9, but ultimately we will all win big because the pie will be MUCH larger. Now if Cain would propose enshrining 9-9-9 as a Constitutional Amendment to replace the 16th, with no Congressional authority to change the rates—a kind of defacto Balanced Budget Amendment—I would be thrilled!!!
That would depend on how much you spend of course, at least for one of those 9's.
The big benefit, at least for those of us who pay taxes, would be as Laffer said, the broadening of the tax base; everyone who buys something pays some tax (including SS recipients).
As for "penalizing" SS recipients, remember, it's not a penalty. They are just being "asked" to pair their "fair share."
Everybody pays taxes.
Liberals and Rhinos are screaming because 9-9-9 would eliminate the “Earned Income Tax Credit” (i.e., Stealth Welfare through the tax code).
Apparently there's a thread for that.
I believe the plan is somewhat regressive (which I am not opposed to). It will impact the lower classes negatively (which I am also not opposed to).
The attacks on it will be because of the impact of the lower classes. Remember 47% of households pay no federal income tax. Many others reduce their effective rate through deductions which will disappear.
When interest deductions disappear the housing market will be even more crushed than now. This will disproportionately impact the elderly since they are more likely to own their homes outright and will come out of their equity. As it is houses have lost 20-50% of their values across the nation.
Social security recipients will get whacked. They will be required to pay 9% in income taxes where they pay little or nothing now AND 9% sales taxes where they pay nothing. Hence their tax rate will be 18% where it was little or nothing.
So, it's risky. I like the part about wiping out the IR Code, but maybe instead of a sales tax, get the revenue from a higher income tax and corporate tax--11 or 12 or even 14 and no sales tax.
” - - - Laffer also said that “such a system provides the least avenues to avoid paying taxes, - - - “
No wonder the Debtocrats don’t like Cain’s 9-9-9 Tax EVERYBODY Plan!
What stops the rates from going sky high now?
THE TAXPAYER. Only this time, everyone is paying taxes. The plan is booby-trapped against raising rates. Every time they try to raise the rates, everyone will SEE it (no more sneak-a-taxes) and even the liberals will be hollering how they will be raising rates on the poor.
I already pay taxes, and I don't particularly like the idea of having to pay nearly $4000 in taxes if I purchase a $25,000 vehicle. That's 15.25% out of pocket for me that doesn't contribute to 1 dime to the principal of the cost of that car. Tack on interest rates, and people will be upside down like hell on their vehicles. I'm in the middle of 2 leases. If this is implemented, and I go to purchase or lease 2 more vehicles, I will be paying out the butt on taxes just for 2 purchases.
My other issue with this is that I don't trust those who implemented Obamacare and the stimulus bill to limit themselves to 9% rates. Since a congress can't bind future congresses to anything, Cain would need a constitutional amendment in order to get this plan implemented. That would, at minimum, need a net gain of 20 seats in the Senate and 48 seats in the House. And that's assuming that the northeastern republicans would go along with it.
Does this tax unearned income? Rents, royalties, interest on loans and bonds?
How does it define “income”? A corporation offsets gross income by the costs of producing that income. The result is corporate net income. What about an individual? And individual ALSO has costs of producing an income. It as always seemed incomprehensible to me that individuals are taxed on GROSS income, whereas corporations are taxed on NET income, and NET income for most corporations over a minimal size and complexity is a true accounting confection, highly arbitrary.
Can you imagine how the IRS employees, tax accountants, Turbo Tax, et. al., and lawyers will fight this! If Cain is elected, we will soon see who’s for America and who’s out for themselves. It’s high time we eliminated the IRS and the rest of those who “feed” off of the current tax system. Talk about a major non-productive element in our society. It’s a national disgrace!
Yeah, but in this new era of Disunited we Stand to take Anything we can Get from the Other, how do you REALLY see that working?
There will be NO OBSTACLE to (just like in the Fair Tax prebate) gerrymandering offsets and credits to the poor and needy and unemployed and every other interest group, and so on.
So, sure. Everyone pays the same. But condoms for gays and lesbians? They're on the exemption list. School lunches? Exempt. Subsidized exempt gasoline cards for working single-mothers? That's just "Common Sense Tax Reform!"
That was my thought exactly. That was, I believe, Cain’s second point about transparency. If there is a simple number for people to see, then they can’t be fooled (probably still can seeing so many idiots now-a-days). If X candidate says, i’m going to raise taxes to X number, then people can vote accordingly.
Read the link.
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