Folks, NEVER support any legislation that calls for a simultaneous federal income tax with a federal sales tax.
That is the proverbial camel’s nose under the tent.
You’ll find even leftists supporting this. They’ll take a massive reduction in taxes in order to get this through.
Why?
Because after Cain leaves office, they will turn 9-9-9 into 19-19-19 then 29-29-29.
And remember those three numbers get added together and passed down the food chain to the consumer.
I like Cain the most of all the candidates. And I like the idea of a federal sales tax REPLACING the federal income tax and reducing taxes wherever possible, 9-9-9 is a really, really bad idea.
Emphasis on the ‘Green’
The other opinion I’d like to bring to the discussion is the following.. 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.”
You are discounting the fact that taxes can ALWAYS be raised and, historically, ALWAYS have been raised. So your objection, on its face, is simply to situation normal. The fact that future Congresses may try to raise tax rates is not a risk unique to the 999 plan.
However, here is what is unique about the 999: it actually makes the usual risk of later tax rate hikes LESS LIKELY.
Why?
Because under 999, EVERY person in America would pay the same income tax rate. Therefore, whenever ANY one Congresscritter wanted to raise tax rates, he couldn't get away with it without affecting 100% of the American population.
Today tax rates get hiked because so many people don't pay taxes, and so many people who do pay taxes have loopholes available to them, that it's easy for congresscritters to vote for taxes that don't affect THEIR constituents.
Under 999, EVERY SINGLE constitutent in EVERY SINGLE congresscritter's district would be affected by any tax rate increase (both income and sales).
That puts exponentially more accountability into the system than we have now.
Again, don't act as though tax rates can't and don't increase now. They do and WE USUALLY CAN"T STOP THESE HIKES because there are two few of us who are stakeholders. That would change under 999.
Because after Cain leaves office, they will turn 9-9-9 into 19-19-19 then 29-29-29.
You are free to worry that ONE of the numbers will be increased, such as increasing corporate taxes in a populist movement.