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  • Cain's Tax Mutiny. New national sales tax on top of the income tax is a political killer

    10/08/2011 4:09:26 PM PDT · by Clairity · 329 replies
    Wall Street Journal ^ | Oct 7, 2011 | WSJ Editorial
    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...