Posted on 10/13/2011 1:45:32 PM PDT by SeekAndFind
In the recent Bloomberg/Washington Post Republican presidential debate the moderators wanted the candidates to get specific regarding their economic/jobs plans.
That's sort of amusing considering that the level of specificity we got from Obama in 2008 was "hope" and "change you can believe in." It turns out that we didn't get much hope, but Obama kept his promise to "fundamentally transform the United States of America.
With his 9-9-9 plan Herman Cain might be getting a little too specific. Actually, it's not the specificity; it's the rigidity that Cain has been displaying which will eventually hurt him.
I think Cain would do well to present his general concept of abolishing the current tax system while remaining flexible as to the details of a fair, non-progressive (equal protection of the laws) tax system.
Rick Santorum pointed out the potential Achilles' heel of Cain's plan: once a federal sales tax is implemented, good luck ending it or lowering the rates in the future. Indeed, the rates will only increase over the years. (Cain's plan: 9% business flat tax; 9% individual flat tax; 9% national sales tax.)
As an experienced congressman, Santorum made the valid point that it may not be wise to give Congress a new tool to increase tax revenue. Remember, originally the income tax was supposed to be a temporary measure.
Cain's response: as president he would veto any law increasing the percentage rates. Well, that won't help much after Cain leaves office. In the future we could have high income tax rates and a national sales tax.
(Excerpt) Read more at americanthinker.com ...
Perry and his amnesty, would make that 51% in 24 months, conservatives would never win another election.
People need to calm down a bit. Mr. Cain has said that his plan is a transitional plan to the Fair Tax, which he has supported for years.
He will have to include: generous personal exemptions, exclusion of social security income (since retirees pay no payroll tax as an offset), and include a balanced budget amendment or cap to fed spending amendment.
Young Caine: [looking down and seeing the insect] Master, why do you call me grasshopper?
Master Po: Because you are ugly like insect.
9-9-9 is more branding and advertising than anything else, notice who’s leading the poles... a man who had to turn businesses around. He used smart branding and slick advertising to get people back to the company’s product. He’s no dummy, once in the white house he would have to get both houses of congress to go along with his plan and that won’t happen without some compromise.
The 9-9-9 plan has only one deduction and this is for charitable donations. That’s a great idea and should be kept in any flat tax plan
That big fat phony Warren Buffet donates most of his earnings to the Bill Gates Foundation because he like what they do with his money better than what the Federal parasites + Obama will do if he declared it as income and was taxed on it.
the last thing we need in this economy is a tax that targets and, therefore, decreases, the consumption of goods. That will not create jobs, it will only exacerbate the underlying problems within this failing economy. It doesn’t help anybody except the federal government. It’s a terrible idea and I can’t imagine why any conservative would be defending it.
LOL
With his 9-9-9 plan Herman Cain might be getting a little too specific. Actually, it’s not the specificity; it’s the rigidity that Cain has been displaying which will eventually hurt him.
If Cain were to give spongy answers (e.g., we could look at not taxing food, we could look at giving rebates, etc.), then people wouold complain that the numbers don’t add up, and they would be right.
Learn from history. Since the inception of the income tax, Congress has never been able to increase revenue above 20% of GDP. whenever they attemted to raise revenues by raising rates, the markets adapted and revenues remained relatively flat as percentage of GDP. 10-10-10 would net 20% of GDP. I would accept that coming out of the gate. I do not believe Congress can devise any plan that will net more than 20% of GDP, never have and never will.
I agree the the 9-9-9 plan is a terrible idea for the simple fact that it introduces a National Sales Tax before eliminating the Income Tax. If we allow that to happen we will forever be saddles with both taxes and I can damn well guarntee you that they be at 9% for long! I think the idea of a National Sales Tax is laudable but only after the income tax is abolished and the 16th amendment is repealed.
I agree the the 9-9-9 plan is a terrible idea for the simple fact that it introduces a National Sales Tax before eliminating the Income Tax. If we allow that to happen we will forever be saddled with both taxes and I can damn well guarantee you that they will not be at 9% for long! I think the idea of a National Sales Tax is laudable but only after the income tax is abolished and the 16th amendment is repealed.
I propose that the federal government reduce its spending to match it's revenue stream. That is what I and we have been proposing for years. I have certainly never heard the tea party screaming for a new federal Tax on everything.
Herman Cain is proposing a transition to a flat tax where everyone pays and Congress can't manipulate the system behind the scenes like they do now.
he's also proposing a 9% sales tax increase. I already pay a 7% sales tax. I got news,as a middle class type person, I pay more than my fair share of taxes to the government via sales taxes, FICA taxes, medicare taxes, gas taxes, liquor taxes, income taxes, property taxes, etc. I'm not going to support a candidate that expects me to pay more. Herman Cain does not have my vote. no way.
What does it tell us about conservatism — both conservatism in general and conservatism as it is embraced by those who post here on FR — that only back in 1992 George H.W. Bush could be “fired” for braking his “read my lips, no new taxes” pledge.... to a new, national tax of almost 10% imposed on EVERYTHING?
A 9% national sales tax is a loser. If Obama and the ‘rats had proposed this, there would be universal howls here.
But let “our black guy” proffer it, and..... ???
From the party of “no new taxes” to “we’ll sock it to ya on EVERYTHING”.
Yup. That’s progress for ya....
Just sayin’....
That's an intelligent response.
***Cain is on the right track, all Cain needs to do is be a little less specific and detailed***
That is a fair statement. In order to reach the uneducated masses who elected the other One based on a few catchy phrases; Cain will have to devise a postcard chart they can comprehend.
His plan passes muster with those who are on the same intellectual plane as Cain - but it must be understandable to the masses.
Heck - even here on FR there are people who can’t or won’t read the literature/formula.
You have it exactly backwards.
One of the biggest factors contributing to our economic downfall has been our abysmal savings rate over the last 25 years and over-appetite for consumption paid for with borrowing (both private and government borrowing).
People spent with no thought of the future, and with little thought of whether they could handle the debt in case of a downturn. The mindset is consume now, because in any event the government will support me and my children and provide me food and healthcare.
Because our tax code and regulations favor foreign producers over domestic producers of goods, this consumption binge has pushed manufacturing of goods overseas, with the result that every year we have trade deficits of hundreds of billions of dollars.
This has resulted in the hard-earned accumulated wealth of previous generations who worked hard and saved being pissed away by the present generation.
This has been going on for some time, but was masked by the easy monetary policy and the rising home values of the housing bubble.
Reducing taxes on production and investment and placing domestic goods on a more equal footing with foreign goods by a sales tax will finally change the incentives in favor of domestic production of goods (AND THEREFORE DECENT DOMESTIC JOBS!!) and domestic capital formation, and ease the coming burden on how to pay for pensions and healthcare for the retiring baby boomers.
Without something that changes the fundamental incentives such as Cain's plan IT IS A CERTAINTY that our standard of living and national power will fall to a second tier country and if we continue our open borders policy, to a third tier country.
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