the last thing we need in this economy is a tax that targets and, therefore, decreases, the consumption of goods. That will not create jobs, it will only exacerbate the underlying problems within this failing economy. It doesn’t help anybody except the federal government. It’s a terrible idea and I can’t imagine why any conservative would be defending it.
You have it exactly backwards.
One of the biggest factors contributing to our economic downfall has been our abysmal savings rate over the last 25 years and over-appetite for consumption paid for with borrowing (both private and government borrowing).
People spent with no thought of the future, and with little thought of whether they could handle the debt in case of a downturn. The mindset is consume now, because in any event the government will support me and my children and provide me food and healthcare.
Because our tax code and regulations favor foreign producers over domestic producers of goods, this consumption binge has pushed manufacturing of goods overseas, with the result that every year we have trade deficits of hundreds of billions of dollars.
This has resulted in the hard-earned accumulated wealth of previous generations who worked hard and saved being pissed away by the present generation.
This has been going on for some time, but was masked by the easy monetary policy and the rising home values of the housing bubble.
Reducing taxes on production and investment and placing domestic goods on a more equal footing with foreign goods by a sales tax will finally change the incentives in favor of domestic production of goods (AND THEREFORE DECENT DOMESTIC JOBS!!) and domestic capital formation, and ease the coming burden on how to pay for pensions and healthcare for the retiring baby boomers.
Without something that changes the fundamental incentives such as Cain's plan IT IS A CERTAINTY that our standard of living and national power will fall to a second tier country and if we continue our open borders policy, to a third tier country.