Posted on 10/15/2011 3:46:42 PM PDT by justsaynomore
Art Laffer (the originator of the Laffer Curve, and inspiration of Reagonomics) breaks down Herman Cain's plan
(Excerpt) Read more at video.foxnews.com ...
Try addressing his curve? Was it right or wrong? What about cains plan? Or are you simply in favor of anything that doesn't rock the boat and keeps the existing tax code in place? If not, which other candidate has a plan to change the fundamental structure of the tax code?
No other candidates do. So, Cain gets the attention because he's the only one with a plan. Try supporting that rather than castigating an economist who has been a relevant part ofthe debate.
But adding a national retail sales tax on top of the federal income tax (even a flat tax) is a bad idea, because it creates the infrastructure for a federal-level, European-style VAT.
AMEN
Cain described the ideas of embedded taxes more in Meet the Press Interview this Morning:
http://www.msnbc.msn.com/id/3032608/vp/44921014#44921014
Here is a quick idea of some “hidden taxes” in everything we buy (Fair Tax material says embedded tax averages 22% of the cost of the product)
From that website: “Despite all the attention given to federal income taxes, they represent only 42 percent of the total tax
burden Americans carry each year. There is at least $657.5 billion in additional “hidden” taxes—$2,642
per person—that is not visible to the taxpayers. If more Americans realized that their total tax burden
equaled 56 percent of annual personal consumption spending, there might be a second Revolution.”
__________
Cain’s plan replaces all of these hidden taxes with flat rate, visible tax, as well as eliminates payroll tax completely.
You can call him on it all you want but Laffer indeed has claimed that the “poor” will still pay no income tax. Unless ofcourse your saying that the indiviual deduction and deductions for dependents will be abolished.
BTW WHAT is CAIN’s claim on that tax issue.
But your arguements are all irrelevent. There is NO CONSTITUTIONAL RIGHT FOR THE FEDS TO COLLECT A SALES TAX.
Read it and weep:
Amendment XVI(Ratified February 3, 1913)
The Congress shall have power to lay and collect taxes on INCOMES from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
OOPS
“Laffer didn’t work for Reagan or play any role in developing Reaganomics.”
Wrong. Laffer was a member of Reagan’s Economic Policy Advisory Board from 1981–1989.
No, it's a transition to having both a national sales tax and a national income tax - and then 9-9-9 will turn into 99-99-99.
I don’t think any of them have been to Cains website. They’re just pulling opinions out of their “everything everyone has”.
And that's in addition to state taxes, county taxes, city taxes, town taxes...hell, maybe homeowner's associations will get in on the action too. Then government at all levels will create un-elected boards and commissions and "super-committees" to impose taxes too.
I’m stealing your tag line.
We need to reform the US tax code/system and make it flatter and abolish the loopholes. Not expand tax options for the left to employ and increase revenue to the federal coffers.
More tax options = more taxes = more revenue = BIGGER GOVT!
read later
Bookmark.
Herman Cain doesn’t believe in his own Economic Recovery Plan...
http://www.youtube.com/watch?v=Q1j9EEl4GGw
As Center for American Progress Vice President for Economic Policy Michael Ettlinger put it, the plan “would be the biggest tax shift from the wealthy to the middle-class in the history of taxation, ever, anywhere, and it would bankrupt the country.”
http://thinkprogress.org/economy/2011/10/05/336649/cain-999-analysis-deficits/
I’ll be very interested hear where President Cain finds $1.5 trillion in spending outlays to make up for the revenue shortfall.
The 999 plan will encourage savings but the effect on spending is much less certain. Exactly the reason that Romney is sympathetic to a sales/flat tax approach but hasn’t taken it as an official platform.
I have been to Cain’s website. It is nothing more than an exercise in theoretical wishful thinking.
If only the world would just support our wishful thinking and get in line, all would arrive in Utopia. The problem is the world doesn’t do that. Our enemies will find a way to thwart us and use our plans against us leaving us bewildered and shocked as to what happened to our vision.
I know the FairTax better than Cain and Boortz put together.
I have personally met in his office Leo Linbeck in Houston. I have worked with the architects of H.R. 25 FairTax legislation.
Cain’s plan is poison.
Read Post #65 which lays it out simply.
The Democrat Senators WILL STRIP THE TRANSITION TO FAIRTAX OUT and pass the rest on to the President to sign. They will hold Republicans accountable if the 9-9-9 WITHOUT TRANSITION is held up.
The problem with you political yahoos is you don’t know how the game is played in DC.
You think that just because some other inexperienced person (Cain) puts it out there on a website, then that’s all that is needed, just a roadmap of good intentions.
We we all know where those roads lined with good intentions lead to. Because all along that fantasy road there are going to be snake oil salesman, robbers and thieves known as LIBS and RINOS that will change the road signs on you and before you know it you will be lost and in peril.
You would do well to get behind the FairTax and stay there. It is by far the safest path towards real reform. And if you need confirmation of that, then just look at how the LIBS/RINOS react against it. As Reagan said, you’ll know when you’re over the target when you can see the flak start hurling towards you.
MARK MY WORDS, CAIN’S PLAN WILL LEAD TO SIMULTANEOUS INCOME TAXES, NATIONAL SALES TAXES AND VATS.
“One of Cain’s supporters has come up with a tax calculator. Check it out...”
Since hubby doesn’t pay into Social Security (he’s California law enforcement), I think we’d pay more. But I’m really not sure.
“...NO CONSTITUTIONAL RIGHT...”
-
On that point, we agree.
I believe a constitutional amendment would be required,
Thanks so much for pointing out the ‘other side’ of Laffer.
He should also know that his support of 9-9-9 is self-contradictory.
His entire thesis is that there is a tipping point between how much people earn and how much the government can get away with taxing before the people figure out a way not to pay. Part of this understanding is that governments always try to reach that tipping point without tipping.
9-9-9 sounds good on paper and will result in extra savings, that is, capital formation.
As soon as the government realizes that the people have more money to tax, they will increment 9-9-9 to 19-19-19 and then to 29-29-29.
I believe we’ll find some big government-spenders coming out in support of 9-9-9 because they have been chomping at the bit trying to figure out a way to impose both a federal income tax and a federal sales tax on the US worker. The fact that this is coming from a Republican conservative will give them all the cover and future blame that they need when they warp it out of its original context and undo any benefits it had initially.
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