Posted on 10/19/2011 10:09:47 AM PDT by SeekAndFind
Tthe Wall Street Journal’s Steve Moore, who helped design Herman Cain’s 9-9-9 tax plan, is having second thoughts about the political viability of the national sales tax aspect of the plan and has recommended a 9 percent payroll tax to replace it.
In an interview with National Review Online, Moore explains that he has “come to the conclusion that a national sales tax is just a nonstarter,” politically. While he wasn’t expecting such a hostile reaction to the idea, Moore concedes that “people are naturally suspicious of a new tax.”
Cain’s current plan would eliminate the payroll tax altogether, and he often touts this as a selling point. However, enthusiasm over the elimination of an existing tax has been overshadowed by concern over the prospect of creating an entirely new revenue source for the federal government. Indeed, as Cain’s poll numbers have continued to rise and other candidates have begun to target him, the “new tax” argument has been a favorite line of attack.
Moore recommends as easy fix — set the payroll tax at 9 percent across the board (a reduction from current levels), while eliminating the existing cap on the amount of income from wages that can be taxed. Moore estimates that this new version of the plan would raise “roughly the same amount” of revenue as the current one, and argues that Cain would be “well-advised” to make the change. It is simply a matter of being “better off with the devil we know than the devil we don’t know.”
That’s not to say that Moore no longer likes the 9-9-9 plan in its current form. “I’d take a national sales tax if it gets [income-tax] rates down to nine percent,” he says. “But there are some very real objections out there.”
Moore acknowledges that despite the criticism from other Republicans, Cain has been a capable defender of the plan its current form. And while he doesn’t expect to see the candidate announce any changes in tonight’s debate, Moore thinks the transition could be relatively smooth. “Is it a capitulation? No. It’s just a strategic change,” he says.
“Republican voters want to blow up the current tax system and start over, and Herman Cain is one of the few who has proposed doing that,” Moore says. “He has the boldest plan out there right now.”
I am 100% fine with 9-9-9 becoming 12-12, or something of that level.
Ahh yes, the Moore that gave us Sharon Angle.
Art Laffer endorses 999 and goes over the plan in this article.
http://online.wsj.com/article/SB10001424052970204346104576637310315367804.html?mod=rss_opinion_main
If a sales tax is a non-starter as part of the 9-9-9 plan then how can the Fair Tax ever be considered much less implemented?
Moore is just showing he can’t take the heat, IMO.
Herman Cain on GITMO Prisoners, 999, Moore
http://www.youtube.com/watch?v=bzujv6zEzmg
I'm not sure what 9-9-9 plan Laffer is talking about but his article speaks of an exemption for people below the poverty level that the plan doesn't contain.
RE: I am 100% fine with 9-9-9 becoming 12-12, or something of that level.
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If 9-9-9 EVER becomes law, I’d really like to see WHO will even attempt to change one of those numbers to a higher one.
He’d be singled out for political crucifixion by both high and low income wage earners (who will now be paying something) alike.
9-9-9. Now 12-12. They can’t get their stories straight.
This is a diversion from 15 Trillion, 15 Trillion, Fifteen Trillion in spending.
So, all you conservatives that want to stop the insanity and not drive the country off a cliff,instead, go argue about how to best fund the Federal Government.
by both high and low income wage earners (who will now be paying something)
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brilliant point.
finally we’d have a system, that doesn’t allow NON-taxpayers, to VOTE for tax increases on OTHERS !
not to mention the other benefits of the plan,
like INSTANTLY making USA produced products 40% MORE competitive in the world...
OK, so if a sales tax is a non-starter politically as part of the 9-9-9 plan then how can the Fair Tax ever be considered politically much less implemented?
I wonder how 9-9-9 would affect a member of congress with all their perks.
Same here. The tax concept should be "We don't care how you get your money, we'll get you when you spend it." (wire transfers to Mexico, et al, come to mind)
Awe heck, they will just approve “temporary” increases.
We know how the suckers always fall for that old line. ;-)
I can accept the following: 9% employee payroll tax, 9% employer match, (both of the preceding dedicated to SS benefits and Medicare), 9% flat rate income tax with an exclusion of Social Security Benefits, plus the 9% corporate.
That’s what I was thinking while reading the article. “Non starter politically”? That’s what Cain is all about. I doubt he’s going to capitulate to a statement like that. He’ll let Chuck Shumer and Mitch McConnell tell the American people why saving 12.00 for every 100.00 you spend is bad for them.
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