Posted on 10/12/2011 7:03:13 PM PDT by LonelyCon
"Now," says Norquist, "There are two or three problems with the Fair Tax." (That's the national sales tax, a replacement for all income and FICA taxes, that Cain has long supported -- it's the eventual goal of 9-9-9.) "Because there is a transition period of some length with any tax phase-in, the fear that people have about the sales tax is that, at some point, Democrats win the House or the Presidency, and you get stuck with both the income tax and the new sales tax. Under 9-9-9 they deliberately set up a time period where you have three taxes. They say they are doing what some of us have feared could happen. Even if you say the income tax is going away, there's a chance of getting both."
Second problem: The sales tax has proven to be a "political loser" when torn apart in the heat of a campaign.
Third problem: "Let's say you're 20 years old. You don't care what tax you pay -- you haven't paid any yet. But if I'm 65, I've spent my whole life paying income taxes. I'm about to stop paying them. What's the benefit to me if you bring on a sales tax? Thanks -- you've just made every retired person's pension 33 percent less valuable."
(Excerpt) Read more at slate.com ...
9-9-9 has nothing to do with state sales taxes or state income taxes. We live in a federal system; each state sets its own sales taxes and income taxes.
Bullcrap.
If people had to pull out the checkbook and pay it all at once, you would have a point. But when it is "withheld", you never even feel it. Having it felt at the point of purchase would be more painful than it is right now.
In fact, most people get all excited about "a big tax refund!", like they haven't been screwed out of interest when the government took and held too much from them.
It’s on TOP of the state, city, county, local, etc sales taxes. Some locations, people could end up paying 20% sales tax on their purchases.
Duh! This is something I've been saying. And seniors vote. Just wait until they find out Cain wants these people, who have been taxed all their lives, on their earnings, their investments, their savings, that now Cain wants them to pony up again--30% more! Yeah right!
9-9-9 is absolutely toxic. The sooner WE accept that, the better. I know it's nice to chug kool-aid and tell yourself Cain is the One, since Palin isn't the One, and last time Fred Thompson wasn't the One. It's easy to deny reality. But reality will win in the end. Better to face it square on.
If the cost of new stuff goes up 30%, why wouldn't sellers of used stuff raise their prices? Hmmmmm?
How about this? Instead of living in your fantasy world of unicorns and moonbeams, show me a place where a 30% consumption tax is in place and working.
I agree. A much simpler, less controversial way to deal with taxation is to make everyone do what I do: pay quarterly taxes. Let everyone keep all their earnings, and then write a check four times a year. That will set the table for real reform. And that’s for ALL fed taxes, including entitlement taxes.
That’s a plan! (It would actual turn things around)
Cain should not have come out with a specific plan because the vast majority won’t understand it and sure as hell won’t get a real explanation from the MSM
It’s a question of what kind of country and economy and standard of living they would like their grandchildren to have.
Our current system shackles both domestic production and domestic capital formation.
By favoring foreign production of goods and imports with impoverishing huge trade imbalances, we have created a vicious circle of eroding our domestic manufacturing base and enabling capital formation in foreign countries, which then is recycled through ownership and credit interests by foreign entities in our businesses and government.
Our high borrowing and consumption and abysmal savings rates is precipitating a collapse in living standard and an inability to fund future pension and healthcare costs.
If they care at all about their grandchildren, they will work to create a new system which creates domestic jobs and incentivizes savings and capital formation.
In other words, it’s in ADDITION to state sales taxes. And this is a “conservative” touting this nonsense.
If that is your reason for not liking the FairTax, then you are flawed in your thinking.
The income tax has been increased little by little incrementally after each of the 5 major tax reforms since 1913. The rate creeps up and if it doesn’t then inflation moves more people into higher brackets which accomplishes the same thing as moving rates up.
So the income tax is deceptive, smoke and mirrors. And yes some people can be ticked off when they see their taxes go up but the tax policymakers can manipulate which groups get hit and which don’t, setting groups against each other.
According to the proposed FairTax legislation, the rate must be voted on each year by Congress. It will be there for all to see and yes Congress can raise it a little at a time but it will be for all to see, Congress won’t be able target certain groups, it’s much fairer that way.
I don’t either but the country started out with sales and excise, duty taxes. Never an income tax..so any big reduction in that is a very good thing.
Norquist would much rather have shariah and have YOU paying jizya. Anything he says is suspect.
1-2-3 on 9-9-9
1. It’s great economically OVERALL.
Art Laffer endorsed it. It will cut tax complaince dramatically and make USA more competitive.
2. It will have winners and losers.
For working taxpayers with middle or upper incomes - a plus.
For retirees who are done making money - a minus.
3. If there are millions of losers in the low-income retirees category ... it WILL NOT PASS. Santorum may be right. It will be demagogued to death.
I learned a long time ago never to put any credence in the words of a guy named Grover.
FUGN!
YOu fat pig at the trough of real Americans.
You and your College Republican brethern are pond scum.
GTH.
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