His economic adviser has already told him to drop the 9% sales tax part of the plan.
I think the smart thing to do would have been to just hit on the problems with the current tax system and the need to consider ways to encourage economic growth including lowering corporate taxes and possibly considering flat tax proposals. There wasn’t going to be any upside to advocating this 999 plan right now.
No he didn’t. Moore said Cain MAY BE forced to it because the sales tax is such a political target for the GOP Establishment bots in the campaign. He did not tell Cain to drop it.
Yep, and his economic adviser wants to replace that 9% by adding it to the payroll taxes.
9% Flat tax plus 10% Chilean deduction Plus 9% new payroll tax = 28% payroll deductions. Wonderful idea ain't it?
One of his advisors suggests to drop it..
And the reason was only that the public doesn’t understand and that it “seems” to be hurting Cain’s chances of being elected. Instead of mounting an ad campaign to explain the plan the guy chickened out. His comment had nothing to do with the plan being good or not.
ONE of his advisors, Stephen Moore, has said that the Sales Tax part MIGHT need to be dropped, simply because it might be too hard to sell. It's a political argument, not an economic one.
If the plan is truly explained, as was stated at the beginning of this thread, folks might just come to understand how they come out better even with the additional tax. As for folks' fears about future Congresses raising the tax, that's more a problem with the politicians, not the tax, itself. And that's why it would be important to always know how a candidate stands on that issue. And it would be much more difficult to raise those taxes in the future, because EVERYONE will have skin in the game, and will be affected by a tax hike.