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Skip to comments.Bold, Brash, and Wrong [9-9-9]
Posted on 10/17/2011 3:25:58 PM PDT by La Enchiladita
Herman Cain deserves credit for proposing a tax-reform plan that is specific, promotes economic growth, and has captured the imagination of conservatives nationwide. His 9-9-9 plan builds on the insight that one of the chief defects of the current tax code is its bias toward consumption over savings. But his plans peculiarities of design, substantive weaknesses, and political naïveté render it unworthy of conservative support.
Cains ultimate objective is a 30 percent national sales tax, but his interim plan is to replace the current income, payroll, and corporate tax codes with three new taxes. A 9 percent income tax would apply to a very different tax base: Capital income would go untaxed, but the exemptions that keep the basic cost of living from being taxed would disappear. A 9 percent value-added tax would be levied on corporations. And consumers would pay a 9 percent retail sales tax as well.
This tripartite scheme makes for a succinct slogan but has little else to recommend it. In particular Cains inability to choose between a sales tax and a VAT is puzzling. The two are very similar in their economic effects. The chief advantage of the sales tax over a VAT is that the latter is considered easier for governments to raise, because it is hidden. The chief advantage of the VAT over the sales tax is that it is easier to enforce without stimulating black markets.
(Excerpt) Read more at nationalreview.com ...
And the Editors’ plan is ......?
Don’t these IDIOTS get it????? Half of America does NOT PAY INCOME tax....WHAT you TAX you get LESS OF!
A VAT tax is not transparent; a sales tax is. Big difference.
Some powerful analysts, including Laffer, Ryan Forbes, and Club for growth disagree with this assessment.
The larger attack here is on the FairTax. A consumption tax is the ideal conservative tax. Whether NR likes 9-9-9 or not, bringing a total revamp of the tax code to the table is the most conservative proposal I’ve seen in decades.
Can’t support 999 myself. No thanks on the consumption tax.
Would be better to focus on what is actually possible - lower income tax rates, less regulation, less spending.
Since this would have to pass in congress, the whole of the plan is either mere window dressing or it is an attempt to start a discussion about where taxes come from and where all that money goes.
Perhaps, if we ask the right questions about spending we will get answers about who candidates can really afford to piss off.
Cain deserves credit and praise for pushing the Overton Window on killing the IRS.
That alone will drown out the criticism of 9-9-9.
The editors, intercourse the editors.They have no plan meaning the current plan in place is just fine with them.Just like romney.NUTTS to them.
Endorse Romney like they did in 2008.
I’ll stick with the conservatives answer on Cain’s plan (particularly the Reagan conservative)
Art Laffer (of Reaganomics) Endorses Cain’s Plan
Reagan Economist Breaks Down 999 Plan
Rich Lowrie Discusses Herman Cain’s 9-9-9 Plan
Paul Ryan Likes Cain’s Plan
How is Herman Cain’s 9-9-9 Plan Good for America
Club for Growth defends Herman Cain, 9-9-9 plan
Can Herman Cain’s Plan work?
Why We Need Herman Cain’s plan:
Office of Tax Analysis for the U.S. Treasury Gary Robbins analyzed and scored his plan. Cain said the analysis shows that his plan will “initially create 6 million jobs and that it will bring the unemployment rate down initially to about half of what it is today.”
What do these numbers mean for me?
53% of People Favor Tax Code that Treats Taxpayers Equally
It’s positions like this that explain why I no longer subscribe to National Review.
Hadn't heard that one before. Prelude to a VAT.
This is just outright lies, unworthy of any further discussion. The moderator should pull this thread.
I don’t like a national sales tax like that. Why should we spend an additional 30 percent? That’s worse than the hidden taxes.
His first sentence gets it right. If you read any of the Austrian econmicsts - Hayek, Schumpeter, von Mises - or even Peter Schiff - they all say that job #1 is to change from consumption to savings. And that’s what the 999 plan does.
Hey 999 haters: guess what? It’s not painless. You can’t have 30 years orgy of over-consumption, easy credit, low interest rates, and not have to pay the bill. We are not too big to fail! The bottom line on 999 is, some will pay a little more, some will pay a little less, but EVERYONE will pay something. I can’t understand how self-described Conservatives can bad-mouth a proposal that puts an end to countless freeloaders. But when they start whining in the next sentence about how they might have to pay a little tax on their new cellphone or big screen, I start to get an idea...
As you say, killing off the monster that the IRS has become should have Conservatives everywhere shouting the praises of 999. If we really believe in smaller, less intrusive federal government - how much more Conservative can you get?
Our tax system is obscene. Mr. Cain is addressing that obscenity. I say this as one of the geezers who will probably come out on the short end. But maybe things will be better for my granddaughter.
The author is referring to the Fair Tax: http://www.fairtax.org
And it is 23% not 30%, but it replaces ALL other taxes (including income and corporate taxes)
“A 9 percent value-added tax would be levied on corporations.”
Where do they get this from? As I understand it, it goes like this:
9% tax on wages
9% tax on corporate profits (gross revenue minus expenses)
9% tax on retail sales of new goods and services.
The above 3 taxes replace ALL OTHER taxes.
Where is the VAT in this scheme?
They get it from being lying socialist bastards.