Posted on 09/29/2011 3:59:45 AM PDT by Cincinatus' Wife
I’ve been self employed most all my life. When corporate taxes go up my prices go up. When fuel prices because of taxes increase fares for shipping that product go up which is added to the price of the goods shipped. If you doubt that think of anything you have ordered. Was there shipping involved? It’s the same for a manufacturer. When they order raw materials they have them shipped in, there’s a shipping cost. When they ship the finished product out, there’s a shipping cost. All of those costs are added to the price of the finished product.
Any tax on corporations or businesses is paid for by the consumer. To think otherwise or not take that into account is naïve at best. We need to keep that concept in mind when considering any restructuring of taxes.
I like what little I know about Cain...but that is very little.
So, I like his personality and resume but I don't know where he stands on many issues.
All this does is give the Socialists an added tax source - VAT. They will not stick with a 9,9,9 plan. It will grow to 29,29,29 plan within a decade. In “bi-partisan” moves, Rinos and Dems it will launch it at 20,20,20.
Flat Tax is the only reform that makes sense. And end Fed sales tax.
Mr. Cain is not the one.
Your right about that undergroung economy, I trade product for services and often food.
If his 9-9-9 Plan is the best attack angle anyone can make on Herman Cain, then we are insane if we do not nominate him as our candidate!
Wonderful. So where will he get the remaining $1.5 trillion to $2 trillion in cuts?
The biggest problem with this proposal is that it still retains the income tax. The income tax needs to go as it has been a constitutional nightmare. As long as you are forced to detail every aspect of your finances, there is no 4th or 5th amendment.
A couple of years. But Reagan's tax rates were considerably higher than the 9-9-9 plan. And he ran significant deficits throughout his whole time in office.
...or serious reduction of spending.
Agreed. So take the current U.S. spending and cut it by by 60% to arrive at a balanced budget under the Cain plan. Let me know what you have left.
At last. Someone who knows the difference between a VAT and a National Sales Tax.
I agree. His plan will probably be compromised in Congress, even if the GOP gets a strong majority in 2012. I would also be mindful of his lack of experience in getting legislation through a legislature, but there’s nothing saying he can’t surround himself with people who can get that job done, too. His success in the business world is a strong indicator of his instincts and work ethic.
Williamson is right. Obama can run against this as a tax increase, and he can run against it as an unjust taxing of retirement money that seniors have already set aside as taxed money.
Any implementation of a 9% sales tax must be as part of a constitutional amendment that simultaneously (1) repeals the 16th amendment income tax, and (2) institutes a sales tax.
Otherwise, politicians will simply KEEP both taxes, and no amount of “educating” by “president cain” will get them to promote an amendment to repeal the 16th, much less ratify it.
It’s simple common sense.
See “Beware the 9’s of Cain” at http://www.freerepublic.com/focus/f-bloggers/2784516/posts
This is just evidence that Cain is a thinker and is willing to shake things up. That's good enough for me.
OK, so identify the 60%+ of current federal spending that you would do away with immediately to avoid the same thing under a Cain tax plan.
Some GOP politicians (Romney and Palin for example) have danced around this issue.
Some have confronted it honestly (Perry, Ryan, DeMint, Daniels).
To beat the drum for (admittedly desirable) tax cuts and economic growth as if that will enable us to run the existing entitlement without major reductions, is deceptive and dangerous.
I'm not yet sure of where Cain stands on this issue.
If he wants to overhaul the law, why doesn’t he run for House or Senate and bring this up there?
As it is it’s just a gimmick proposal he knows he can’t effect. The legislature wouldn’t dream of doing such a thing. But if we could get enough people like Herman Cain to run for House or Senate...?
(People like Cain, except that they don’t feel they must enter at the top.)
The author is doing exactly what libtard taxers do: assuming there would be little or no change in business or consumer behavior in response to changing tax systems.
Even supposing this assumption is correct, adding 500 billion annually to the federal deficit is far less than what ObaMao has done. To put in perspective, it is about 88 times the cost of one single failed solar boondoggle. It is about the same cost as ObaMao's mini Porkulus II proposal which would basically do no more than reward some of his union supporters through the next election cycle.
But economic behavior is not stagnant. Businesses and consumers would not just sit on 500 billion dollars less which they would send to Fedzilla, they would spend it or invest it. This would create more jobs and more tax revenue. It would also lower compliance costs by about (surprise!) 500 billion dollars by conservative estimates.
Now, whether Cain could actually get such a plan implemented or sold to a populace and bipartisan political class brainwashed with Keynesian economics is an entirely different matter, but it is a hell of a good starting point.
My personal opinion would be that we might end up closer to an 11-11-11 plan. Historically, tax receipts tend to be about 20% of GDP (give or take a couple of percent) no matter where we put the tax rates.
I suspect Herman Cain who is a math major is keeping Fedzilla's take minimal to allow states and localities to get some. He may also be using the optimistic end of the historical model The 9% income tax plus 9% sales tax does produce 18% in a stagnant model, minus 9% of what we save, invest or what is sales tax exempt. That difference would be made up in the 9% corporate tax, which is built into the cost of things we buy and, essentially, taxed again when we do so.
We need a Spending Reform in addition to a Tax Reform.
I believe he is advocating adopting a system similar to what the nation of Chile has in place. I’m sure I’m not as familiar with the specifics as some of the the other Cain supporters are, but at least that’s what I’ve heard him say in the debates.
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