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Godfather of Supply-Side Economics Supports Cain's '9-9-9' Plan
Human Events ^ | 10/12/11 | Tony Lee

Posted on 10/12/2011 6:50:02 PM PDT by justsaynomore

As businessman Herman Cain surges atop state and national polls and becomes a top-tier presidential contender, his signature "9-9-9" plan, which calls for a nine percent tax on income, a nine percent national sales tax, and a nine percent corporate income tax, has come under scrutiny from the right and the left.

Famed supply-side economist Art Laffer told HUMAN EVENTS that Cain's "9-9-9" plan was a pro-growth plan that would create the proper conditions for America's economy to grow and thrive again.

"Herman Cain’s 9-9-9 plan would be a vast improvement over the current tax system and a boon to the U.S. economy," Laffer told HUMAN EVENTS in a statement. "The goal of supply-side tax reform is always a broadening of the tax base and lowering of marginal tax rates."

Added Laffer: "Mr. Cain’s plan is simple, transparent, neutral with respect to capital and labor, and savings and consumption, and also greatly decreases the hidden costs of tax compliance. There is no doubt that economic growth would surge upon implementation of 9-9-9."

Laffer also said that "such a system provides the least avenues to avoid paying taxes, yet also maintains the strongest incentives for work effort, production, and investment."

At the GOP presidential debate in New Hampshire on Tuesday, Cain's plan received criticism from many of the candidates on stage.

Former Utah Gov. Jon Huntsman said that Americans needed a plan that was "doable-doable-doable" when asked his opinion on Cain's "9-9-9" plan.

Rep. Michele Bachmann (R.-Minn.) said that the "9-9-9" plan was not "a jobs plan," but was rather "a tax plan." Bachmann also complained of Congress getting another revenue stream from the plan and said, "you turn the 9-9-9 plan upside down, and the devil's in the details."

Former Pennsylvania Sen. Rick Santorum said that the "9-9-9" plan was not a passable solution.

Further, Cain has been criticized from the left as well, as charges that his "9-9-9" plan is regressive have been made, charges that Cain has often refuted by citing that the payroll tax would be eliminated under his plan and used goods would not be levied sales taxes.

As Cain's profile increases and poll numbers rise, his opponents will attack him more fiercely over his "9-9-9" plan, but it looks like Cain has found an ally in Laffer, an economist who is more than respected by fiscal, pro-growth conservatives.


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: 666; 999; bipartisan; economists; hermancain; laffer; salestaxmoralabyss; socialists; tax; wellwellwell
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1 posted on 10/12/2011 6:50:06 PM PDT by justsaynomore
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To: justsaynomore

What could possibly prevent 9-9-9 from becoming 12-12-12, then 16-16-16 as congress gets to tool with it over the years?


2 posted on 10/12/2011 6:53:41 PM PDT by Baynative (The penalty for not participating in politics is you will be governed by your inferiors.)
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To: justsaynomore

Art, how do you prevent the 9-9-9 from turning into 27-27-27?


3 posted on 10/12/2011 6:54:53 PM PDT by yup2394871293
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To: justsaynomore

When I was in High School, I ate a whole medium Goldfather’s “supreme” pizza by myself.


4 posted on 10/12/2011 6:55:38 PM PDT by Perdogg (I will support any Republican candidate against 0bama in 2012)
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To: justsaynomore

I never liked huntsman but I lost some respect for Ms bachman with the upside down 999. Many who support Cain are God fearing country loving people. To bring up 666 against Cain was really ugly.


5 posted on 10/12/2011 6:55:56 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: Baynative

The ballot box.

Next step is to repeal the 17th Amendment.


6 posted on 10/12/2011 6:56:07 PM PDT by SeaHawkFan
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To: yup2394871293

How do you prevent anything from being passed?


7 posted on 10/12/2011 6:56:29 PM PDT by Perdogg (I will support any Republican candidate against 0bama in 2012)
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To: K-oneTexas; Tucker822; Kartographer; freekitty; carmody; Dead Corpse; MsLady; Publius772000; ...

Pinganator!

NBC/WSJ poll: Cain now leads GOP pack (Cain 27% Romney 23% Perry 16%)
http://www.freerepublic.com/focus/f-news/2791874/posts

Oh my: Cain 30, Romney 22, Gingrich 15, Perry 14
http://www.freerepublic.com/focus/f-news/2791920/posts

“Cain Vaults to Lead in Poll” : WALL STREET JOURNAL
http://www.freerepublic.com/focus/f-news/2791936/posts

Herman Cain versus the established idealogue
http://communities.washingtontimes.com/neighborhood/middle-class-guy/2011/oct/12/herman-cain-versus-establishment/#.TpY2fI8WOOQ.facebook

Cain’s 9-9-9 Plan Gets a Closer Look
http://www.freerepublic.com/focus/f-news/2791905/posts

Kevin Hassett, an economist and senior fellow at the conservative American Enterprise Institute, praised Cain’s plan as moving toward a flat tax.

“If someone’s going to attack the 9-9-9 plan I would say they should be careful because you are talking about the Republican holy grail,” Hassett said,

The plan, Hassett said, hews to the conservative orthodoxy of “taxing consumption rather than success.”

HERMAN CAIN OP-ED: My Plan To Revive Economic Growth
http://www.bookerrising.net/2011/09/herman-cain-op-ed-my-plan-to-revive.html

SHOCK POLL: Herman Cain Leads GOP Nationally! (PPP Poll has Romney trailing by 8 points)
http://www.freerepublic.com/focus/f-news/2791769/posts

_____________

Ready to help get Cain to the WH? Give your time, talent or treasure here: http://www.hermancain.com


8 posted on 10/12/2011 6:56:47 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: justsaynomore; Cincinatus' Wife; shield; smoothsailing; Clairity
Cain is so far my preferred alternative. That said, I want you to envision the IRS monitoring every transaction to get its cut, including every drug deal, or every instance of barter. They would want agents everywhere and collecting it might well justify chipping. In fact, that Perry hasn't latched onto this shows how stupid he and his campaign really are. I am flagging the Perry worshipers so that they can force the issue at the top.

So, as much as I like consumption taxes in principle, this is one proposal where the devil is truly in the details and Mr. Cain should be very clear about what he proposes to make this both workable, just, and minimally intrusive.

9 posted on 10/12/2011 6:57:35 PM PDT by Carry_Okie (There are people in power who belong in jail.)
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To: justsaynomore
The funny thing is I last saw Art Laffer at an event where Perry spoke - sponsored by the TPPF (Texas Public Policy Foundation). Their Pres. & CEO used to work for Perry.

TPPF recently installed Art Laffer as a Sr. Fellow.

10 posted on 10/12/2011 6:58:42 PM PDT by Jane Long (Soli Deo Gloria!)
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To: Baynative

What is stopping them now? Nothing.

The 999 has more built-in limitations than the current tax system:

It is transparent, so everyone will see what Congress is trying to do if they try to raise rates.

Because everyone is paying, if they try to raise the rates, there will be public outcry. The very though of raising taxes on the poor is like a built in boobytrap.

Cain will ask Congress to put in 2/3 majorit rules to keep from changing rates - if they will is another question. It has been done, historically.


11 posted on 10/12/2011 6:59:14 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: Baynative

Looking for a guarantee on promises? Talk to God. You won’t find it in human politics.


12 posted on 10/12/2011 6:59:19 PM PDT by Prince Caspian
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To: yup2394871293

Because 100% of the people are now PAYING THE DAMN TAX.
Have You seen what happens when welfare checks don’t go out in time.
Also it would required two thirds vote not just majority.


13 posted on 10/12/2011 6:59:19 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: yup2394871293

Because 100% of the people are now PAYING THE DAMN TAX.
Have You seen what happens when welfare checks don’t go out in time.
Also it would required two thirds vote not just majority.


14 posted on 10/12/2011 6:59:28 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: Baynative

voters


15 posted on 10/12/2011 6:59:37 PM PDT by Rudder (The Main Stream Media is Our Enemy---get used to it.)
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To: yup2394871293

How do you prevent democrats from stealing all your money?


16 posted on 10/12/2011 7:01:19 PM PDT by Rudder (The Main Stream Media is Our Enemy---get used to it.)
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To: justsaynomore
The elimination of the home mortgage deduction would destroy what's left of the housing market in America for a generation.

I honestly can think of nothing worse that could be done to worsen the housing crisis.

17 posted on 10/12/2011 7:01:19 PM PDT by TexasFreeper2009 (Obama = Epic Fail)
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To: Baynative
What could possibly prevent 9-9-9 from becoming 12-12-12, then 16-16-16 as congress gets to tool with it over the years?

I haven't made up my mind about 9-9-9, but I don't see anything that keeps our current rates from going up either. Right now, we have tinkering in the background with brackets and such.

18 posted on 10/12/2011 7:01:31 PM PDT by umgud
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To: Baynative
What could possibly prevent 9-9-9 from becoming 12-12-12, then 16-16-16 as congress gets to tool with it over the years?

You.

19 posted on 10/12/2011 7:01:45 PM PDT by COBOL2Java (Obama is the least qualified guy in whatever room he walks into.)
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To: TexasFreeper2009
The elimination of the home mortgage deduction would destroy what's left of the housing market in America for a generation.

Tip of the day: don't vote for Obama.

20 posted on 10/12/2011 7:02:53 PM PDT by Rudder (The Main Stream Media is Our Enemy---get used to it.)
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To: SeaHawkFan

Courtesy ping, please.


21 posted on 10/12/2011 7:02:53 PM PDT by Repeal The 17th
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To: Donnafrflorida
She meant it as a joke.

Do you view it as a sacred number that shouldn't be joked about?

22 posted on 10/12/2011 7:02:58 PM PDT by Dr. White
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To: Dr. White

The joke didn’t bother me, what bothered me is she completely misrepresented the sales tax portion of his plan. She supported Fair Tax for crying out loud, which is all sales tax. I have always supported Bachmann and everyone here can testify to that, but I lost a TON of respect for her last night. It was a very low blow.


23 posted on 10/12/2011 7:06:14 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: yup2394871293; Baynative

What prevents the current tax structure from skyrocketing rates?

Cain is a genius. His system is a setup for revealing that the income tax was never properly ratified, making phase 2 (the fair tax) unstoppable. He would be able to end the income tax and destroy all IRS income tax records with an Executive Order.

9-9-9 transforms into 0-27-0 and the US economy becomes the mightiest engine of prosperity ever seen.


24 posted on 10/12/2011 7:08:18 PM PDT by Go_Raiders (The wrong smoke detector might just kill you - http://www.theworldfiresafetyfoundation.org)
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To: Rudder

Regarding the fed question.
The question was who would You pick FROM the last fed chairs in the last forty years.
I found out there was only three in the last thirty years.
Greenspan Volcker and bernake.
The question was loaded.
Also good or bad, I understand that Greenspan worked for Reagan bush one Clinton and bush two.
This period of time had an economic boom.

AND YES I THINK THE FED SHOULD BE AUDITED. (MY WORDS)


25 posted on 10/12/2011 7:09:37 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: Go_Raiders

His system is a setup for revealing that the income tax was never properly ratified,

Uh, what?


26 posted on 10/12/2011 7:09:42 PM PDT by magritte
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To: Me

ping for later


27 posted on 10/12/2011 7:11:56 PM PDT by occamrzr06 (One day this will all make sense!)
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To: Dr. White

How did it advance the debate.
I am all for jokes but 666 . Not funny.
Had No Substance or Relevance whatsoever


28 posted on 10/12/2011 7:12:01 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: justsaynomore

Yikes! It’s just an idea and a more coherent one than anything from any of the other candidates. Even if Cain wins, this goes nowhere unless Congress creates the legislation and passes it. Odds of something as simple as 9-9-9 coming out of Congress is between slim and none.


29 posted on 10/12/2011 7:12:10 PM PDT by tips up (Living is easy with eyes closed, misunderstanding all you see.)
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To: Dr. White

How did it advance the debate.
I am all for jokes but 666 . Not funny.
Had No Substance or Relevance whatsoever


30 posted on 10/12/2011 7:12:10 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: justsaynomore

I support the 999 Plan fully. But I do hope Cain comes out with a book, or a carefully crafted video or some sort of thing that presents this plan with all the details, and answers all the critics.

Either that, or he’s just got to present it in a very vague way, indicating that he will do SOMETHING to reform the tax code.

Too many folks out there taking this plan and making wrong assumptions and spreading false claims which the liberals will run away with and the stupid gullible sheep will accept without question.


31 posted on 10/12/2011 7:14:41 PM PDT by LibsRJerks
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To: Donnafrflorida

I looked up a Gallup poll from that time frame - Greenspan’s approval rating by Republicans was in the 80s


32 posted on 10/12/2011 7:14:47 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: Baynative

What is stopping Congress from raising taxes now? Public pressure. That’s how it would be with ANY tax code, including our current code. The threat of government raising taxes is by no means only part of 9-9-9.


33 posted on 10/12/2011 7:15:28 PM PDT by PAConservative1 (Would you like to sponsor a young illegal's college tuition? Vote Perry!)
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To: Go_Raiders
His system is a setup for revealing that the income tax was never properly ratified, making phase 2 (the fair tax) unstoppable.

The courts routinely incarcerate tax protesters who try defending themselves that way. I hope Cain's plan is better than that, otherwise we may really be stuck with Romney.
34 posted on 10/12/2011 7:16:22 PM PDT by yup2394871293
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To: Baynative
What could possibly prevent 9-9-9 from becoming 12-12-12, then 16-16-16 as congress gets to tool with it over the years?

Every voter in this country. The reason so many democrats get elected is because they promise to take from others and redistribute it to their constituents. That won't work when those constituents become part of the group from whom the democrats do the taking (i.e., taxpayers). The democrats will only have the dead, the illegal and the Hollywood elite to vote for an increase in 9-9-9.
35 posted on 10/12/2011 7:17:38 PM PDT by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: justsaynomore

They say endorsements don’t matter but this one carries weight with me.


36 posted on 10/12/2011 7:18:59 PM PDT by samtheman (Palin. In your heart you know she's right.)
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To: TexasFreeper2009

In case you haven’t noticed, the housing market has already been destroyed. The home mortgage tax “incentive” has never been anything less than a government ploy to make “investors” feel better about paying exorbitant interest rates. It’s a negative return anyway you slice it.

It would be better to let the market establish its base. Government interference only makes matters worse. Removing another false government incentive will do nothing more than hasten the return of the housing market to its real value.


37 posted on 10/12/2011 7:20:35 PM PDT by antidisestablishment (Our people perish through lack of wisdom, but they are content in their ignorance.)
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To: Perdogg

omg! What a slob...haha...I heard talkradio show Hewitt todat stating as a matter of fact that it will be either Romney or Perry as they are the ones with the money. O ye of little faith!


38 posted on 10/12/2011 7:23:43 PM PDT by fabian (" And a new day will dawn for those who stand long, and the forests will echo with laughter")
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To: Perdogg

omg! What a slob...haha...I heard talkradio show Hewitt todat stating as a matter of fact that it will be either Romney or Perry as they are the ones with the money. O ye of little faith!


39 posted on 10/12/2011 7:23:57 PM PDT by fabian (" And a new day will dawn for those who stand long, and the forests will echo with laughter")
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To: Donnafrflorida

It would help her more if she offered a competing plan instead of numerology.


40 posted on 10/12/2011 7:25:07 PM PDT by yup2394871293
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To: justsaynomore

If anyone wants to see some numbers broken down - someone at Redstate posted this:

http://www.redstate.com/apocomilitiaman/2011/10/12/rough-math-of-the-999-plan/


41 posted on 10/12/2011 7:26:59 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: magritte

I can’t provide a link from here. Just google “the law that never was.”


42 posted on 10/12/2011 7:27:43 PM PDT by Go_Raiders (The wrong smoke detector might just kill you - http://www.theworldfiresafetyfoundation.org)
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To: justsaynomore

The “they’ll just raise it” argument against the 9-9-9 plan is a non-starter. You can say the same thing of any tax. My biggest problem with the plan is the federal sales tax— digging deep into the main revenue source of state and local governments. It’ll kill off that revenue.

I still like Cain. The 9-9-9 plan doesn’t have a prayer of passing Congress, so I can still safely support him if I need to.


43 posted on 10/12/2011 7:31:49 PM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: Baynative
Cain the TALKER said that if he is elected President (LOL) he would have in the 9-9-9 bill something that Congress could not increase taxes as long as he is President (ROTFL), talk about total naivety.

The 9-9-9 tax plan is a political disaster. It imposes an mandatory federal 9% tax n individual income without any deduction on almost 50% of the people who pay no federal income tax after they file for all the deductions under the current tax system. Moreover and worst of all the 9% national sales tax is on everything including basic items such as food and cloth because there is no way that his disaster 9-9-9 tax plan can raise revenues similar to what we are getting now unless the 9% sales tax is on every item we purchase.

44 posted on 10/12/2011 7:34:01 PM PDT by jgge
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To: yup2394871293

C’mon, guys, that’s a bit silly. You could just write it into a constitutional amendment.

And as one of the other commenters noted, it’s different than current law how?


45 posted on 10/12/2011 7:39:50 PM PDT by Mason
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To: jgge
Rough Math of the 999 plan
Avg Wage FICA avg Income Tax Necessities Nat Sales Tax State Tax GA Leftover
40,711.61
2524.12 5455.35574 26840.35 0 2442.6966 3,449.09
vs 999
40,711.61
0 3664.0449 26840.35 2415.6315 2442.6966 5,348.89
Avg Wage
100000 6200 13400 48000 0 6000 26,400.00
vs 999
100000 0 9000 48000 4320 6000 32,680.00
Avg Wage
250000 15500 33500 48000 0 15000 138,000.00
vs 999
250000 0 22500 48000 4320 15000 160,180.00

46 posted on 10/12/2011 7:40:02 PM PDT by SeekAndFind (u)
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To: umgud

I haven’t made up my mind about 9-9-9, but I don’t see anything that keeps our current rates from going up either.
____________________________________________________________

I keep seeing people post this stupidity, here’s a clue:

The thing keeping them from raising the national sales tax rate right now is:

THERE IS NO NATIONAL SALES TAX!!!!!!


47 posted on 10/12/2011 7:42:50 PM PDT by free me (heartless)
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To: justsaynomore

Put that tax on services as well, since this is supposed to be “Service Economy”. That means everything from lawyers fees and stock transactions to tanning salons and dog grooming boutiques. Maybe it would go down to 6-6-6. :-)


48 posted on 10/12/2011 7:47:10 PM PDT by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: justsaynomore
Art Laffer was a great Reaganite. I haven't paid much attention to Laffer or taken him seriously since he told the world he voted for Bill Clinton, TWICE!

Cain is starting to look like a Perot-clone v.2011.

Cain's 999 tax plan is nothing more than a gimmick. It expands the federal tax system by adding a national sales tax to the mix. Conservatives don't want more tax options that liberals could use as a tool of social engineering and class warfare. No thanks.

49 posted on 10/12/2011 7:48:52 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: justsaynomore

bump to the title, y’all.


50 posted on 10/12/2011 7:51:12 PM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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