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Statement of Herman Cain, Chairman, Godfather's Pizza, Inc.,
house.gov ^
| May 9, 2002
| Herman Cain
Posted on 05/10/2002 9:49:43 AM PDT by n-tres-ted
click here to read article
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To: n-tres-ted,CincinnatiKid ,jd792 ,dixie sass,chesty puller,antivenom,muggs ,Grendelgrey ,GRRRRR ,p
To: rwfromkansas; Taxreform
Thanks for the ping.
Herman Cain's is a powerful voice calling for fundamental tax reform. He will be hard to ignore, and can, conceivably start a very large FTR snow ball rolling downhill.
Did anyone take Bill Gale's arguments apart at the hearing?
42
posted on
05/10/2002 10:04:11 PM PDT
by
Taxman
To: mhking
Thanks for the ping. We really should be doing more educating on the Fair Tax.
43
posted on
05/10/2002 10:05:53 PM PDT
by
mafree
To: n-tres-ted
The FairTax would be Visible The FairTax is highly visible, because there would be only one tax rate Congress could modify on all taxpayers at the same time. Moreover, all citizens would be subject to any tax increases, not just a targeted few. It would be much harder for Congress to adopt the typical divide-and-conquer, hide-and-disguise tax increase strategy it uses today. The FairTax would explicitly state the contribution to the Federal government each and every time a good or service is purchased.
This, my friend is the primary motivation for the power/money grabbers to maintain the status quo!
Can you imagine the uproar when every "Joe" suddenly realizes how little they are getting in return for their hard earned money?
To: goo goo g'joob
goo goo g'joobMuch time has passed.
I finally have the perspective of time to make my decision.
Yes, I still like your screen name.
To: ancient_geezer;n-tres-ted
Thanks to you both and BTTT!
To: n-tres-ted
Unfortunately the 22% in taxes plus the difference in shipping and distribution is quickly overcome by the order of magnitude difference in wage rates between here and overseas. If we can make a widgit for $10, it can be made overseas for $1. If the taxes on that widgit and the cost to ship it are less than $9, it will be made overseas. If this country truly wants to compete, manufacturing laborers won't be making $30/hour they'll be making $10/hour and probably much less.
47
posted on
05/11/2002 10:29:22 AM PDT
by
Rockitz
To: ATOMIC_PUNK
Hey, thanks! I hadn't seen that book, although I was somewhat aware of Mr. Cain's accomplishments and views. Anyone know whether C-SPAN will show those hearings?
To: Rockitz
All of those economic issues work their way through the market system on a decision by decision. The bottom line is that Americans cannot be better off when investment capital is being spent to build production plants overseas rather than here. Efficiency in production is important, and labor costs are an important element. But a burdensome tax system unfavorable to the investment of capital is presently the major element that determines the building of plants overseas. That is reflected by a study performed about five years ago and presented to the Chairman of the Committee on Ways and Means at the time showing a dramatic move of new investment capital to the U. S. under the Fair Tax. Take a look at this paper on the subject:
http://www.fairtax.org/pdfs/manufacturing.pdf
To: n-tres-ted
Unfortunately, the time constant associated with enacting each of those decisions is typically not treated appropriately in theoretical economic analyses. Now that infrastructure has been established overseas I suspect that a racheting down of wage rates in this country is inevitable along with a reduction in the standard of living. The subject tax proposal will serve to speed that process to the dismay of the unions and the workers they represent. Protected high technology and defense workers withstanding, this will be a very painful process for the average American worker that unknowingly has been the benefactor of current tax policy through the inflated wage rates it has produced. The proposal will most certainly have a globalizing effect on our economy that will reduce the mean standard of living of unskilled wage earners.
50
posted on
05/12/2002 6:39:29 PM PDT
by
Rockitz
To: Rockitz
I think your analysis is invalid. The existing tax structure encourages the investment in foreign manufacturing capacity. Our tax reform proposal would greatly encourage investment here rather than overseas. I don't see how you can suggest reforming the presently harmful tax system would make the situation worse. It just doesn not follow.
To: n-tres-ted
Calling for Tax Reform! GoTo: PETITIONS! ...and sign 'em both. Do yourself a favor!
Ask others to visit the PETITIONS! site and sign 'em, too.
Cliff Cofer - West Des Moines, Iowa
Bye, bye... Income Tax (and IRS)! We won't miss ya' at all!
52
posted on
05/12/2002 11:04:17 PM PDT
by
CliffC
To: n-tres-ted
You missed my point. It's a perception issue. Payroll, corporate, et al. taxes disguise the true labor rate in this country. With the proposed tax reform, US labor rates will compare apples to apples with overseas labor rates. As it is now, US wages are publicly perceived to be much lower than they really are. With this proposed reform, the unions will not be able to get away with the semantics of apparent wage rates with respect to actual wage rates (which include payroll, corporate, et al. taxes). No real reduction in wage rates means continuing exodus of manufacturing capacity out of this country. True labor rate reductions, however, will maintain manufacturing in this country.
Shifting the tax burden to the consumer will indeed reduce the cost of manufacturing in this country only through real reductions in labor rates. For the consumer, the proposed tax reform is a boon. For the overpaid, unskilled, union worker in this country, it is a death knell which allows business to point out just how radically overpaid they are.
Until such time as true wage rates are reduced to a level whereby it is economically unviable to manufacture overseas, manufacturing will continue to go overseas to take advantage of cheap labor rates.
53
posted on
05/12/2002 11:26:21 PM PDT
by
Rockitz
To: n-tres-ted
"Consumer prices would decrease 20 to 30 percent by eliminating the nearly 250 billion dollars in annual compliance costs, and eliminating the taxes on corporate profits and labor (payroll taxes), which are imbedded in what we pay for goods and services. (Dr. Dale Jorgenson and other economists)."What is more likely is that the cost of all the non-necessities will rise substantially with the added National Sales Tax, which is great only for those who do not consume.
Moreover, if certain "necessities" were not taxed, or subject to a rebate (incidently, when do the low income folk get their rebate - monthly, quarterly, annually?) lobbying efforts would begin immediately get more products and services on the "necessities" list.
And how is the zillion dollar casino industry, which has inspired federal and state and local governments with their 'added' income tax revenue, to be taxed? By the bet?
In other words, the cure-all is still subject to the tinkering that has turned the present system into what it is today.
To: n-tres-ted
No taxes on the poor because basic necessities, as defined by the Department of Health and Human Services, would not be taxed by utilizing a rebate. This is one of those things that I've never understood. Why a "rebate?" Why not just making necessities tax exempt from the get-go?
Mark
55
posted on
05/12/2002 11:38:40 PM PDT
by
MarkL
To: MarkL
This is one of those things that I've never understood. Why a "rebate?" Why not just making necessities tax exempt from the get-go? What would be "necessities" ?
Food ? steak & lobster versus hamburger & fish-sticks --both tax free ...
Clothing ? new tennis shoes for the kids vs. my Nicona snake-tip cowboy boots ?
The rebate side-steps any social futzing by the congressritters.
Everybody gets a rebate offset equivalent to the poverty level spending. After that, it's "luxury" spending.
A full discussion at Cato.org
To: Rockitz
Thanks for the clarification. I still think union workers will be better off with the reform than without it. They will get 100% of the paychecks just like everyone else. The new investment here in plants and equipment must make them better off than without it. And market forces will always make them have to be competitive in wages and productivity. Thanks again for responding and for your perceptions. I hope you will put your talents behind this Fair Tax legislation. I think its beauties are still in the process of being discovered.
To: MarkL
The rebate achieves very important purposes: It makes sure the poorest people are not taxed until they have put food on the table and purchased other basic necessities. And it does this without making any American report his income in order to qualify for the rebate. With the proposed structure of the rebate, every one gets necessities without taxes up to the level of subsistence spending. Over that amount (such as the amounts and types of food, etc., richer folks would consume), sales tax will be paid. And we want individuals to decide where those basic expenditures are to be made. We do not want to get into the practice of exempting specific products and not others from the tax.
To: Bounceback
Frankly I don't know whether a casino would have to pay sales tax on gambling revenues as if the gambling were a "service" being finally consumed. Does anyone know the correct answer to that question?
To: n-tres-ted
bttt
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