Posted on 10/08/2011 4:09:26 PM PDT by Clairity
The real political defect of the Cain plan is that it imposes a new national sales tax while maintaining the income tax. Mr. Cain's rates are seductively low, but the current income tax was introduced in 1913 with a top rate of 7% amid promises that it would never exceed 10%. By 1918 the top rate was 77%.
Part of Mr. Cain's appeal is his willingness to challenge political convention, and he certainly has with his tax proposal. Voters like that he isn't a lifetime politician but a successful business owner who has met a payroll and created jobs. But his endorsement of a sales tax on top of the income tax is a political gamble that would eventually finance an even larger entitlement state. Better to reform the devil we know—the income tax—than to introduce another devil and end up with ever-rising rates of both.
(Excerpt) Read more at online.wsj.com ...
Yup.
Washington state Constitution says we can have one or the other, but NOT BOTH.
And the good people of the state have REPEATEDLY REJECTED an income tax in favor of a sales tax.
“How so?
Cutting spending and a balanced budget is the stated goal.”
Never heard of unitended consequenses? Tax rates are temporary. They can be changed in budget reconciliation, and require only a simple majority to pass. New taxes are permenent. A new tax can be filibustered in the Senate. A tax rate increase can’t. Once you have a new tax, history suggests it will inevitably be increased. I support a national sales tax, but only if all the other Federal taxes are repealed in the same bill.
And I can count on one hand (with fingers left over) those who have held a Government executive office that I trust to get us out of this mess. Elected officials are why we are where we are today. Just sayin'.
Anyone who looks at the numbers can see that Cain's plan is a significant tax increase for over half the population.
...as the price of goods and services significantly drops DUE TO THE REDUCTION IN CORPORATE TAXES.
And if you honestly believe that would happen then you're being naive.
“This is an outright lie. Do your homework”
What’s a lie? Why do you Cainiacs insist on calling anyone who questions your hero a “liar”, but never seem to be able to specify what is a lie. Put up or shut up!
Clairity,
You started this thread over an hour ago, and have not responded to any comments since.
The question above, from jafojeffsurf, is a fair question that deserves an answer.
He has plenty of experience WITH gov't.
Civilian Defense employee
Various leadership positions in Business
Federal Reserve Member
Head of the National Restaurant Association
Big gov't sucks and he knows it. Perry = Bush III and Mittens = Obama lite.
Likelyhood that Cain’s 999 plan gets implemented IF the man’s elected: 9%.
What’s to discuss?
Ronald Reagan promised to dissolve the Energy Department. He should have promised to tear down the Berlin Wall!
Communism was easier to defeat than the D.C. Establishment and its 7 out of 10 wealthiest counties in the nation.
And 9% on all their income regardless of source. All the extra exemptions retirees enjoy under the current laws will disappear under Cain's plan. It's a major tax increase for most people. Not something one would want to base a presidential campaign on.
Not true. A sales tax is an excise tax, the kind that was origianally authorized in the Constitution. You pay a federal sales tax every time you buy gas.
Right. No business would want to price their product competitively if a reduction in their costs gave them the leeway to do so. What was I thinking?
GE didn't pay taxes last year. I didn't see any big reduction in their prices. Any savings in taxes will go to the company's bottom line.
The reality is it's a red herring put forward by opponents of the Fair Tax to ensure that nothing is done. If you insist that the 16th be repealed first, then Congress has to pass it, and send it on to the states for 2/3 of the legislatures to pass. Then they can say their hands are tied until the states pass it, which probably won't happen. The income tax can be repealed like any other legislation. Then if someone wants to bring it back, they need to start from scratch, passed in both houses, over a fillibuster in the Senate, and signed by a president. And this would have to happen with all the public outrage that would occur once people were used to never having to file a tax return again.
Wrong...... all government officials are, and have to be elected. It's how the Constitutional form of Government was and is established.
You did graduate High School didn't you? You see, there is this thing called Government, established by the People and For the People, and the Constitution; (From Wikipedia)
To form a more perfect Union.
The phrase “to form a more perfect Union” has been construed as referring to the shift to the Constitution from the Articles of Confederation.[69] In this transition, the “Union” was made “more perfect” by the creation of a federal government with enough power to act directly upon citizens, rather than a government with narrowly limited power that could act on citizens (e.g., by imposing taxes) only indirectly through the states.
Believe it or not, there is more............
National sales tax is a Pandora’s Box I’d rather not open as long as there’s the income tax and the 16th amendment in effect.
While Cain is likable, this right now is the main thing of his that keeps me from putting a lawn sign of his on my property. That’s not to say I won’t vote for him in the primary considering who is still in the race by the time my primary comes around (which is June, so it may well be a settled matter anyway), but the 9-9-9 plan as it stands is currently a deal-breaker for me.
Actually there is a HUGE difference between a VAT and a sales tax. VAT taxes wealth creation, the latter taxes consumption. VAT taxes put domestic producers at a disadvantage to foriegn producers. That's why European countries have to have an elaborate system of subsidies for companies to make up for VAT. It creates tons of red tape, and the cost of enforcement is high. A sales tax is simple. You pay a tax on what you buy, regardless of where it was made, and never have to report anything.
It looks simple and straightforward. It's not.
I'm withholding judgment.
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