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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

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To: Clairity

This 999 plan is a joke. It penalizes large families with the sales tax and still taxes the same amount on income. Retaining the corporate tax is just another burden since all corporate taxes are passed on to the consumer.


61 posted on 10/08/2011 5:05:55 PM PDT by Logical me
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To: Clairity

The question is “what would prevent the Federal Sales Tax from being increased.”

The answer is: “Exactly the same thing that prevents the income tax from being raised even higher than it i -—self interest. The will of the people. AnD since EVERYBODY buys stuff, EVERYBODY has a direct interest in keeping Sales Tax it low, unlike the Income Tax which only 50% of the population has an interest in keeping it low.


62 posted on 10/08/2011 5:06:18 PM PDT by cookcounty (2012 choice: It's the Tea Party or the Slumber Party.)
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To: FritzG

“Why would he need to eliminate the 16th? Congress can simply reduce or increase the rate at anytime.”

That’s what I fear, FritzG, Congress can increase or reduce the rate anytime. That is a big problem.

The 16th needs to be rescinded before we add a national sales tax.

So, does Cain have a plan to abolish the 16th? That’s the question I’m asking and the answer I’m looking for.

Cheers, FRiend.


63 posted on 10/08/2011 5:06:28 PM PDT by sergeantdave
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To: Clairity

Herman Cain is a political neophyte. He has no executive experience in government and no record for folks to judge him on. Mere rhetoric does not justify electing someone who may preach conservatism, but hasn’t worked at getting it through a legislature and passed into law. The Founders did want citizen legislators over lifetime politicians. But setting your sights on the ultimate prize, without learning your craft is a recipe for failure.


64 posted on 10/08/2011 5:07:57 PM PDT by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: SoJoCo

You’re correct. There is no basis to believe that the national sales tax would eliminate state and local sales taxes. However, and this is why all the “it will hurt the poor” arguments begin to crumble, because we are talking percentage here and not hard numbers, those state and local taxes will be reduced as the price of goods and services significantly drops DUE TO THE REDUCTION IN CORPORATE TAXES.


65 posted on 10/08/2011 5:09:11 PM PDT by william clark (Ecclesiastes 10:2)
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To: 2111USMC
He automatically assumes that taxes on all levels will be increased in the future.

The best predictor of future direction is past direction.

66 posted on 10/08/2011 5:10:17 PM PDT by Texan
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To: sergeantdave
Yeah, that's a problem. I'm worried that Congress could add and do some other crazy things when it comes to Amendments.

On the plus side, it can be done. At least when it comes to Gov't speed. I think when they made it 18 for Presidential elections that it was relatively quick, around 8 months I think.

67 posted on 10/08/2011 5:12:30 PM PDT by FritzG
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To: goat granny
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

Amen and amen

68 posted on 10/08/2011 5:13:05 PM PDT by Texan
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To: SoJoCo
"Cain's website says a 9% sales tax period. It doesn't say on new goods only. So while I could see if you bought a used powersaw from your neighbor then you wouldn't pay tax on it. But buy a used car from Ford and you would. "

Cain has specifically stated it would not apply to used items or housing.

69 posted on 10/08/2011 5:13:21 PM PDT by cookcounty (2012 choice: It's the Tea Party or the Slumber Party.)
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To: cookcounty
AnD since EVERYBODY buys stuff, EVERYBODY has a direct interest in keeping Sales Tax it low, unlike the Income Tax which only 50% of the population has an interest in keeping it low.

Well, as one major flaw, the 9-9-9 plan makes everyone EXCEPT those in "empowerment zones" interested in keeping taxes low. Those in Cain's "empowerment zones" are allowed to have lower business and personal taxes. That is specifically targeted at "inner cities." You could conceivably have inner city residents paying no personal taxes or business taxes.
70 posted on 10/08/2011 5:13:47 PM PDT by DTxAg (The Presidency is not an entry-level position.)
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To: trisham

I think it’s a fairly balanced article. In fact, most of it is devoted to spelling out the positives in Cain’s plan.

The problem they see, though, is that there is nothing to prevent the tax rates from rising, and there’s nothing to prevent the acceptance of the sales tax part without ever lowering the income tax rate.

Better, I think, to have one new amendment that simultaneously (1) repeals the 16h amendment, (2) prohibits anyone from instituting a legislatively authorized income tax, and (3) institutes a national sales tax with an upper limit of X%.

If it isn’t nailed down by the constitution then the legislature can easily keep raising the rates. They always have in the past. They’ll try again.


71 posted on 10/08/2011 5:15:27 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: SoJoCo
In short, a tax on virtually everything you buy.

And I doubt that the states and cities will be willing to give up their state and local taxes so add that on top.

72 posted on 10/08/2011 5:16:44 PM PDT by Texan
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To: Prokopton
I love how you tack your cute little Populist labels on everything you know little to nothing about.

I just so happen to be one of those Hard Core Capitalists, and there is absolutely NO “Crony” any near or in it! Just a whole lot of sacrifice, hard work and calculated risk. But it is the very reason that America has reached levels that the rest of the World can only dream they would be at.

If I want to change anything, I shut my mouth, roll up my sleeves and do something about it. Contrary to whining about how bad successful business people are or how evil they are. I especially don't voice childishly jealous diatribes or categorize unfair cheap shots at other successful people either.

But never mind a response, It's easy to understand what side of the tracks you have placed yourself on. And you will likely stay there for some time until you learn and more importantly, earn a little respect.

73 posted on 10/08/2011 5:17:03 PM PDT by PSYCHO-FREEP (If you come to a fork in the road, take it........)
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To: BarnacleCenturion
Once he said "Yes, we Cain," I turned it off.

We've already had three years of "Yes, we can."

999 is just a distraction. It is a shell game.

This Cain Train is just too gimmicky for me.

74 posted on 10/08/2011 5:17:20 PM PDT by World'sGoneInsane (You can keep repeating it, but it does not make it true. It only makes it propaganda.)
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To: goat granny

I think you’re right, goat granny. We would need a new breed of congresscritter to take on the illegal fascist IRS bureaucrats and the traitor democrats.

I have a solution, but FR won’t allow me to post it. It would involve specific traitors - lots of them - hanging from lampposts.


75 posted on 10/08/2011 5:17:31 PM PDT by sergeantdave
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To: o2bfree

I like how all the socialists posting on this thread think they can defeat the tea party candidate by advertising supporting for the current progressive tax code.

Establishment Republicans = Endless Socialism


76 posted on 10/08/2011 5:17:40 PM PDT by o2bfree
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To: Reagan Man
Herman Cain is a political neophyte. He has no executive experience in government and no record for folks to judge him on.

Kinda like George Washington, eh?

----

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

77 posted on 10/08/2011 5:19:40 PM PDT by JCG
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To: World'sGoneInsane

...it’s an o’bomb’a’cain.


78 posted on 10/08/2011 5:19:57 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: cookcounty
Cain has specifically stated it would not apply to used items or housing.

Cain's own website says no such thing. A 9% sales tax with no exceptions mentioned. Link

79 posted on 10/08/2011 5:20:20 PM PDT by SoJoCo
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To: SoJoCo
But if someone can PLEASE clarify, I have what may be the fly in the ointment of 999:

Seniors on Social Security. The seniors have spent their lifetime paying the payroll tax, but now they are beyond those years. They have no direct benefit from the abolition of the payroll tax. However, they will now have to pay an extra 9% on everything they buy, so for them the plan seems a net fairly strong negative. And without the seniors, Cain will fail and so will 999.

Do I misunderstand? Did I miss something? Cain fans please reply (I basically like Herman a lot!).

80 posted on 10/08/2011 5:20:20 PM PDT by cookcounty (2012 choice: It's the Tea Party or the Slumber Party.)
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