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Cain's Tax Mutiny. New national sales tax on top of the income tax is a political killer
Wall Street Journal ^ | Oct 7, 2011 | WSJ Editorial

Posted on 10/08/2011 4:09:26 PM PDT by Clairity

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 his endorsement of a sales tax on top of the income tax is a political gamble that would eventually finance an even larger entitlement state. Better to reform the devil we know—the income tax—than to introduce another devil and end up with ever-rising rates of both.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: 999; biggovernment; cain; commie; eurovat; hermancain; lie; periwinklelies; perrybotliars; perryclowns; perryromneyvp; pizzaman; rinos4perry; taxes
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People anxious to jump on the Cain bandwagon may want to take a closer look at the man and his planned policies.
1 posted on 10/08/2011 4:09:31 PM PDT by Clairity
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To: Clairity

****But his endorsement of a sales tax on top of the income tax is a political gamble that would eventually finance an even larger entitlement state.****

How so?

Cutting spending and a balanced budget is the stated goal.


2 posted on 10/08/2011 4:13:37 PM PDT by sodpoodle (God is ignoring me - because He is watching you.)
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To: Clairity

I’ve looked very carefully at Cain, Perry & even Romney.

Hands down Cain is the BEST of the three. Perry is better than Romney...but that’s not saying much.


3 posted on 10/08/2011 4:13:41 PM PDT by proudpapa (Cain-West - 2012)
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To: Clairity

I’ve looked very carefully at Cain, Perry & even Romney.

Hands down Cain is the BEST of the three. Perry is better than Romney...but that’s not saying much.


4 posted on 10/08/2011 4:13:51 PM PDT by proudpapa (Cain-West - 2012)
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To: Clairity

Well, I’m not going to toss out Mr. Cain with the bath water without asking a few questions:

1) Has he said he wants to add his national sales tax on top of the income tax?

2) Does he have a plan to repeal the 16th amendment?


5 posted on 10/08/2011 4:15:33 PM PDT by sergeantdave
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To: Clairity

If it was a political killer he wouldn’t be leading in the polls. But then, when are pundits ever right about anything?

Hear Cain in his own words:

http://www.c-spanvideo.org/program/SummitAfter/start/5769/stop/9318

This opinion piece distorts his plan.


6 posted on 10/08/2011 4:17:45 PM PDT by BarnacleCenturion (Heartless)
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To: Clairity

This is an outright lie. Do your homework.


7 posted on 10/08/2011 4:18:41 PM PDT by trisham (Zen is not easy. It takes effort to attain nothingness. And then what do you have? Bupkis.)
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To: sergeantdave

That’s what his 9-9-9 economic plan is:

9% national sales tax (New goods only)
9% income tax
9% corporate tax

I would reckon the income and corporate taxes don’t have few, if any, loopholes.


8 posted on 10/08/2011 4:19:32 PM PDT by abercrombie_guy_38
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To: Clairity

I watched Fox Business this morning and they were all saying Cain’s plan would be great.


9 posted on 10/08/2011 4:19:56 PM PDT by ilovesarah2012
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To: Clairity

A national sales tax on top of a flat income tax makes perfect sense because it will serve to even out the peaks and valleys in revenue by using two different revenue streams. Fiscally it makes great sense. Politically, it will cause hysterics, like anything else Cain says.


10 posted on 10/08/2011 4:20:17 PM PDT by Batrachian (Not every human problem deserves a law.)
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To: sergeantdave
"The 9-9-9 plan would resuscitate this economy because it replaces the outdated tax code that allows politicians to pick winners and losers, and to provide favors in the form of tax breaks, special exemptions and loopholes.

It simplifies the code dramatically: 9% business flat tax, 9% personal flat tax, 9% sales tax."

~Herman Cain






11 posted on 10/08/2011 4:21:40 PM PDT by trisham (Zen is not easy. It takes effort to attain nothingness. And then what do you have? Bupkis.)
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To: Clairity

Pass constitutional amendment defining that sales tax can not exceed 9%.


12 posted on 10/08/2011 4:21:40 PM PDT by heiss
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To: Clairity

Cain is not a dictator, he presents a plan to congress, congress writes and passes an agreed upon plan after debate, if you are about to dirty your undies over a plan, before the legislative process takes place, call on your fellow democraps for help.


13 posted on 10/08/2011 4:21:50 PM PDT by org.whodat (Just another heartless American, hated by Perry and his fellow democrats.)
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To: Cincinatus' Wife; RoosterRedux; jonrick46; deepbluesea; RockinRight; TexMom7; potlatch; ...
Perry Ping....

IF you'd rather NOT be pinged FReepmail me.

IF you'd like to be added FReepmail me. Thanks.

*****************************************************************************************************************************************************

GOVERNOR RICK PERRY: Gun control is hitting the target you're aiming at.......

14 posted on 10/08/2011 4:22:26 PM PDT by shield (Rev 2:9 Woe unto those who say they are Judahites and are not, but are of the syna GOG ue of Satan.)
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To: Clairity

>amid promises that it would never exceed 10%.

Wow. Lie.

9% sales tax turns illegals, and non income tax payers into taxPAYERS, which means they are stakeholders.


15 posted on 10/08/2011 4:23:01 PM PDT by ROTB (Christian sin breeds enemies for the USA. If you're a Christian, stop sinning, and spread the Word..)
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To: sergeantdave
Why would he need to eliminate the 16th? Congress can simply reduce or increase the rate at anytime.

One could reduce the income rate to 0 and simply use the 'Fair Tax' that he supports.

16 posted on 10/08/2011 4:27:15 PM PDT by FritzG
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To: Clairity
Cain's gross lack of experience will be his undoing. Sooner than later, he has over extended his hand at the table. With all the attention pointed his way, he is sure to blunder and show his inabilities.

I must say, this foolish proposal is exactly why I dropped all support for Cain in March of this year. He repeated this idiotic proposal then, and I could clearly see he was just not able to lead this country in any substantial way.

17 posted on 10/08/2011 4:30:40 PM PDT by PSYCHO-FREEP (If you come to a fork in the road, take it........)
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To: trisham
.. . if Cain were flying a plane and the stall warning sounded he'd say "Wooooh, slow down!"
18 posted on 10/08/2011 4:31:03 PM PDT by de.rm ('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
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To: Clairity

I know your a Perry supporter and that is fine, but did you miss the part where the current tax code is replaced? or are you trying to mislead? If it was a mistake then fine, but if you are trying to mislead why side step the truth?
9% on earnings and then 9% on what we spend or better yet 0% on what we save!

What would be Perry’s plan or the plan you would propose? After all we have to pay something to get ride of the debt and deficit we have now. Don’t forget cut, cut, cut, which I think both candidates would do.


19 posted on 10/08/2011 4:31:20 PM PDT by jafojeffsurf (Return to the Constitution)
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To: Clairity
I like Caine, however he just got into the top tier, and has not had the vetting a top candidate receives. I expect he will have to go through a lot more scrutiny now.

Caine also does not have a voting record to examine, or public executive office record. We have to trust his words.

20 posted on 10/08/2011 4:31:20 PM PDT by Moorings
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To: Clairity

There can be no national sales tax without a constitutional amendment.


21 posted on 10/08/2011 4:33:09 PM PDT by Repeal The 17th
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To: Clairity; P-Marlowe

Looks like the Wall Street Journal agrees with what I’ve been saying now for some time.

And the LESSER amount of money raised by 999 can only mean that Cain’s plan does NOT pay for his new Chilean Model Social Security.

Some will say that his plan gets rid of social security payroll taxes, but not so fast. He is ADDING a Chilean Model new deduction to pay that totals ANOTHER 10-20% of income.

So, it’s really 9-9-9 + (Chilean 10-20%)

Obama will eat his lunch.


22 posted on 10/08/2011 4:33:16 PM PDT by xzins (Retired Army Chaplain and Proud of It! True Supporters of our Troops PRAY for their VICTORY!)
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To: FritzG

Can’t you read? Cain’s triple 9 is not a FAIR tax. It is a surtax which is added on to the already ridiculous income tax currently in place.

There is no way you can claim otherwise.


23 posted on 10/08/2011 4:33:38 PM PDT by PSYCHO-FREEP (If you come to a fork in the road, take it........)
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To: FritzG

In theory, to prevent Congress from ever taxing income again.


24 posted on 10/08/2011 4:33:38 PM PDT by Absolutely Nobama (Chairman Obama And Ron Paul Are Sure Signs The Republic Is In Serious Trouble. God Help Us All.)
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To: Clairity
YEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEESSSSSSSSSSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Someone is FINALLY taking on Cain's IDIOTIC plan. Hopefully some other campaign reads this and RUNS WITH IT! FINALLY!

25 posted on 10/08/2011 4:34:51 PM PDT by Huck (NO FEDERAL SALES TAX -- UNDER ANY CIRCUMSTANCES)
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To: Clairity

Americans are always looking for a quick fix.

Cains plan is not quick or a fix. It is just another road to higher taxation. Even Cain said the deficit would go up under his plan.

No thanks.


26 posted on 10/08/2011 4:35:30 PM PDT by marty60
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To: PSYCHO-FREEP

Cain’s stated goal is to have a Fair Tax, do u not understand that?


27 posted on 10/08/2011 4:37:16 PM PDT by FritzG
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To: PSYCHO-FREEP

It is a VAT TAX


28 posted on 10/08/2011 4:37:35 PM PDT by shield (Rev 2:9 Woe unto those who say they are Judahites and are not, but are of the syna GOG ue of Satan.)
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To: abercrombie_guy_38
9% national sales tax (New goods only)
9% income tax
9% corporate tax
I would reckon the income and corporate taxes don’t have few, if any, loopholes.
So, a family of 10 pays 9% and a family of 1 pays 9% and if your buy anything, new school clothes etc. you pay your state sales tax of 7 or 8% PLUS 9%. Again, if you buy 1 pair of jeans you pay 9% or if you buy 10 pairs of jeans you pay 9%. The rich, can go across the border and buy stuff in Canada or Mexico.
29 posted on 10/08/2011 4:38:26 PM PDT by McGavin999 (Please don't be a Freeploader, help to keep the lights on.)
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To: Huck
This is what Dr. Wheeler said about Cain, yesterday: Will it be show time for Cain? Will one of his competitors ask him about the fatal flaw in his 9-9-9 tax reform plan? As Erik Erickson asks it:

"Given the Republican Party has a unparalleled history of being unable or unwilling to truly scale back the size and scope of the federal government and its creeping socialism, do we really want the Republican Party to be the party to introduce a national sales tax or VAT tax without first repealing the income tax?"

There's also the question of to what extent Cain is a jerk. He certainly is one towards Perry for whom he expresses a personal animus. He refuses to apologize for implying that Perry was somehow "insensitive" regarding the Niggerhead Rock smear, and told Hugh Hewitt on Wednesday (10/05) that:

"If it's one of those other candidates up there (who gets the nomination instead of him), I am going to support them 100%. If Governor Perry gets the nomination, I will still support him, but it won't be 100%."

Sorry, but this is simply being a jerk. Perry wants to repeal the 16th and 17th Amendments, and drastically reduce the size and power of the federal government via the 10th Amendment, while Romney as an establishment RINO will do none of this. But Cain could get behind the RINO and not the 10th Amendment guy?

His argument is particularly pathetic, misconstruing Perry's stand on illegal immigration. The hypocrisy is glaring, for, as the regional manager of hundreds of Burger Kings and CEO of Godfather's Pizza, he employed hundreds if not thousands of illegals. Has anyone ever asked him what actions he took to ensure the businesses he ran hired no illegals?

There's a lot to like in Herman Cain but there's a lot to give one pause as well.

30 posted on 10/08/2011 4:38:54 PM PDT by shield (Rev 2:9 Woe unto those who say they are Judahites and are not, but are of the syna GOG ue of Satan.)
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To: PSYCHO-FREEP
I must say, this foolish proposal is exactly why I dropped all support for Cain in March of this year. He repeated this idiotic proposal then, and I could clearly see he was just not able to lead this country in any substantial way.

Well, the only other two potential candidates are both "good ol' boy" Crony Capitalists. I guess the status quo suits you, but most conservatives want a change.

31 posted on 10/08/2011 4:39:28 PM PDT by Prokopton
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To: Clairity
I like Cain, but not his national sales tax, it would be similar to Europe's VAT tax. Once imposed there would never be a chance to lose it, and the possibility another future administration would raise the percentage

A second big concern is his lack of concern over the Federal Reserve.

Two main Issues. His big pluses are strong character, capitalist and loves America.

32 posted on 10/08/2011 4:40:38 PM PDT by opentalk
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To: marty60

You moderate party operatives are not even particular about the white house. I have a feeling that, you guys are using Romney as scape goat and win few senate seats. It is really sad that, we cannot get a conservative other than Romney & Perry. Wait and watch the way Obama sweeps the floow with Romney and Perry


33 posted on 10/08/2011 4:41:13 PM PDT by Ranjit
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To: sodpoodle

I know it’s the goal, but you assume that future Congresses wouldn’t increase taxes.

I am firmly opposed to the FairTax for this reason.


34 posted on 10/08/2011 4:41:42 PM PDT by dinodino
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To: Clairity
The writer creates a straw-man argument.

He automatically assumes that taxes on all levels will be increased in the future.

Until actual legislation is written, the premise of this article is meaningless.

35 posted on 10/08/2011 4:42:27 PM PDT by 2111USMC (Not a hard man to track. Leaves dead men wherever he goes.)
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To: Clairity
Elimination of the witholding is more than enough.

* Unites all tax payers so we all pay income taxes and no one pays payroll taxes
* Provides the least incentive to evade taxes and the fewest opportunities to do so
* Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc.
* Is fair, neutral, transparent, and efficient
* Ends nearly all deductions and special interest favors
* Ends all payroll taxes
* Ends the Death Tax
* Features zero tax on capital gains and repatriated profits
* Lowest marginal rates on production
* Allows immediate expensing of business investments * Eliminates double taxation of dividends
* Increases capital formation. Capital per worker drives productivity and wage growth
* Capital formation will aid capital availability for small businesses
* Features a platform to launch properly structured Empowerment Zones to revitalize our inner cities
* We all know the Fed has tripled the money supply since 2008. They have been printing money out of thin air to finance the Obama spending machine. While true Fed reform that restores sound money may have to wait for my election, the best thing we can do now is to pursue policies that increase the DEMAND for dollars to help mitigate the risks associated with the increase in the supply.
* Pro-growth economic policies equal a strong dollar policy

36 posted on 10/08/2011 4:47:05 PM PDT by hobbes1 (Hobbes1TheOmniscient® "St.Sarah, the1Tru Conservative that REFUSES to unite us and Save America")
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To: Huck
Most of Cain's supporters who jumped from Palin to Cain, took the same blind rhetoric with them. When ever you read their posts, just remove the name “Cain” and replace it with “Palin”, and you have the exact same inflated, exxagerated hype.

Cain is just not all star Presidential material. He is a radio talk show host and political amateur who has never held a Government executive office, similar to a familiar Community Organizer who was supposed to be a Washington Outsider who would reform all of Washington. And we cannot afford another one of those to experiment on this economy, or this nearly broken system. No way, no how!

37 posted on 10/08/2011 4:48:39 PM PDT by PSYCHO-FREEP (If you come to a fork in the road, take it........)
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To: shield

I really had to laugh watching them disect this on FOX today. The host says “Well of course YOU like it, instead of paying 35% you’d pay 9%) and she said “And all those people who are paying nothing will be paying their fair share” LOL!


38 posted on 10/08/2011 4:49:23 PM PDT by McGavin999 (Please don't be a Freeploader, help to keep the lights on.)
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To: Clairity

Post after post after post...Your desperation is beyond funny it’s getting really ugly now.


39 posted on 10/08/2011 4:49:23 PM PDT by lewislynn ( What does the global warming movement and the Fairtax movement have in commom? Misinformation)
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To: 2111USMC
He automatically assumes that taxes on all levels will be increased in the future.

Yeah, what a crackpot assumption! I mean, we all know the tendency of government is to take less and less and...oh wait. Nevermind.

40 posted on 10/08/2011 4:50:00 PM PDT by Huck (NO FEDERAL SALES TAX -- UNDER ANY CIRCUMSTANCES)
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To: PSYCHO-FREEP
...jumped from sarah 2 hermi, like squirrels from nut 2 nut!
41 posted on 10/08/2011 4:50:59 PM PDT by de.rm ('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
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To: Clairity
I favor 999 for the same reason I oppose Obama. Anything would be better than what we have now.

----

Send treats to the troops...
Great because you did it.
www.AnySoldier.com
(An entirely free service)

42 posted on 10/08/2011 4:51:27 PM PDT by JCG
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To: shield

“It is a VAT TAX”

Wrong.

See #6.


43 posted on 10/08/2011 4:51:43 PM PDT by BarnacleCenturion (Heartless)
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To: Huck

Why couldn’t the legislation have a permanently binding cap?


44 posted on 10/08/2011 4:51:58 PM PDT by 2111USMC (Not a hard man to track. Leaves dead men wherever he goes.)
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To: Clairity
Photobucket
45 posted on 10/08/2011 4:52:32 PM PDT by FatherofFive (Islam is evil and must be eradicated)
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To: sodpoodle
Cutting spending and a balanced budget is the stated goal.

As are a considerable tax increase for the majority of the people in the country. How do you think that'll go over?

46 posted on 10/08/2011 4:52:53 PM PDT by SoJoCo
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To: PSYCHO-FREEP

“Can’t you read? Cain’s triple 9 is not a FAIR tax.”

It’s a transition to the fair tax. Read again.


47 posted on 10/08/2011 4:53:53 PM PDT by BarnacleCenturion (Heartless)
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To: sergeantdave

I have posted many times, politicans always have a new idea on taxes, but not one has talked about repeal of the 16th amendment...It would take passing congress and then 2/3 of all the states to be repealed....I think congress would not want to give up that power of income taxes...without repeal, no new types of taxes of any kind....


48 posted on 10/08/2011 4:53:58 PM PDT by goat granny
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To: BarnacleCenturion
Yes, it is. You can dress it up however you want to so it is prettier but it is a VAT TAX...
49 posted on 10/08/2011 4:55:26 PM PDT by shield (Rev 2:9 Woe unto those who say they are Judahites and are not, but are of the syna GOG ue of Satan.)
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To: PSYCHO-FREEP
Cain is just not all star Presidential material. He is a radio talk show host and political amateur who has never held a Government executive office, similar to a familiar Community Organizer who was supposed to be a Washington Outsider who would reform all of Washington.

There's a difference. The Community Organizer was an empty suit. Cain is for real.

----

Send treats to the troops...
Great because you did it.
www.AnySoldier.com
(An entirely free service)

50 posted on 10/08/2011 4:55:53 PM PDT by JCG
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