I'm going to be charitable and assume that Cain is just naively assuming that they will pass it on, and not intentionally misrepresenting his plan. But when he says low income workers will save 18% from no payroll tax, it just isn't true.
Have you ever ran a competitive business?
The extra cash goes to higher wages to draw better workers, into R&D to make better products, expansion of the company, which means hiring more people, higher wages to remain competitive.
Remember, the way things used to be before oppressive corporate tax rates?
Remember “gas wars”?
That’s just one example of the company lowering the cost of the product and passing the savings on to the consumer, making up for it with sales volume.
Remember the crappy cars the US used to make in the 70’s?
Remember what happened after Reagan cut the corporate tax rate?
The US started building better quality cars at a lower cost.
The current Corvette ZR-1 is a world class sports car that will beat a Ferrari around the track at Nurburgring, but it’s 1/5th the cost.
Yeah, the leather interior isn’t as nice as the Ferrari’s, but is that worth spending an extra 400k on?
That and the “prestige” of having a dancing pony emblem on your hood?
Facts are, once the corporate rate was slashed, the US became a major player again in the automotive industry, a decade after building crap like the Pinto and the Gremlin and other “fine” examples of automotive engineering.
“I’m going to be charitable and assume that Cain is just naively assuming that they will pass it on, and not intentionally misrepresenting his plan. But when he says low income workers will save 18% from no payroll tax, it just isn’t true.”
I really like Hermann Cain and he makes me laugh (great sense of humor) and he even sings well! However, the last 9 in his 9-9-9 plan gives me great pause. That is why I hope he is someone’s VP rather than Prez at this point in time, until he can see the error of his ways on that last 9.