Imagine that a Cain administration and Republican congress are replaced by Democrats down the road. Now imagine them raising it to 30-30-30.
That argument can be made about any tax plan. That’s why the 999 plan has many extra items included such as eliminating the tax collection bureaucracy and requiring super-majority for any tax increases. Cain also said this is step towards a fair tax. Forbes said this was a great plan that is a good stepping stone to a flat tax or fair tax.
Imagine that liberals took over the government and raised our marginal tax rate to 90%. But that could never happen. Oh wait, it did happen and with a Republican president.
Tell me... since everyone is paying the same percentage, how Dems will get the working class to be ok with a 30% tax? Unemployment is maybe around 10% (15% if you want to assume things). That’s 85% of the working class that would see their check diminish. They wouldn’t allow that. With the tax code now, Dems can raise taxes on the rich and not the poor and the poor don’t care b/c it doesn’t affect them. This would change. It would effect them and they would not like that.
Imagine the Democrats trying to raise tax rates when EVERYONE has skin in the game. Ain't gonna happen.
Tnat could happen much more easily *under the tax system we have now* than under 999.
Why?
Because under today’s system, about 50% of constituents of Congress do not pay any taxes whatsoever. So these congresscritters can vote to raise taxes all they want and, not only will they not get any pushback from their constituents, they’ll actually get rewarded for robbing the “rich” and delivering more free stuff to the parasites.
Under 999, EVERYONE pays taxes and everyone pays the SAME RATE. So anytime the tax rate were increased, it would impact 100% of the constituents of 100% of congresscritters.
If Congress could make a good case to the nation for raising the tax rate, then they made a good case.
If not, they get shouted down by a much more powerful contingent of We The People than the few taxpayers we have now.
And if Libs are crying now about how a flat tax “hurts the poor the most,” how will they justify raising the rate after it’s enacted?
They won’t and they can’t. Of course, they will lobby for exceptions for “the poors.” But that’s the crappola we put up with now anyway.
I believe that once we establish a national principle that everyone should pay taxes and everyone should pay the same rate that this will become a powerful force for self-regulating the tax rate.
It will become more and more the new “third rail of politics” to try to claim that some people, groups here and there, should pay a lower rate or a higher rate.
Now imagine them raising it to 30-30-30.
“Imagine that a Cain administration and Republican congress are replaced by Democrats down the road. Now imagine them raising it to 30-30-30.”
I think they would be hard pressed to do that because 100% of the population would be affected by the raise in rates. One way to sell this to low income earners would be to incorporate the pre-bate from the fair tax. That is send out a check for the amount of sales tax a family would pay on purchases up to the poverty line. That way you can tell them not only are you going to be keeping a lot more of your check because now there is no Social security or medicare withholding, but you will be getting a check in advance each month in the amount of the tax you would pay in that month based on the poverty line. I think in the fair tax legislation it worked out to something like $450 for a family of 4. There, no one pays tax on basic essentials like food and clothing without exempting those items from the tax.
I think that what would be the danger would not be a raise in the rates but all kinds of exemptions for different things like medicine or food. Open that gate and everybody will be lobbying to have their product or service exempted and we would be right back in the same boat we are in now with a gigantic incomprehensible tax code.
The government already sends out about 70 million checks a month now for social security and other payments. Fill out a form, how many in your household, calculate the pre-bate and send it out. The government will get the money back in the form of sales taxes paid.
Yes, I can just see Maxine Waters raising a tax paid by “her people” from 9% to 30%. Treating them almost like they’re rich!