1) How’s he going to get around the Constitutional issues (the Sixteenth Amendment authorizing Congress to tax income and no amendment authorizing Congress to tax sales)?
2) A sales tax has looked better to many than an income tax because, among other things, supposedly it would be a one-time-only tax for something, less wasteful than having to file income tax every year, and less intrusive than having the IRS policing your income or returns. However, many have said that the 9% sales tax will apply through the entire supply chain, taxing the same thing over and over again as value is added and as it moves from producer through distribution and retail. What’s in here to guarantee only retail sales are taxed?
3) If somehow he’s able to get around the Constitutional issues and the value-added issues, the plan has another problem - the "tyranny of the status quo" which takes over about 100 days after the new guy is in office. Why not just get a bill passed immediately after taking office that features time-phased implementation such as: 1) immediately lowering both income and sales taxes to 9% as proposed (NO OTHER TAXES) and 2) mandating BOTH a gradual and complete phase-out of income tax while creating and phasing in a sales tax? Otherwise he risks getting us bogged down midstream with a sales tax without having passed a bill abolishing the income tax - a Socialists dream.
4) He needs spending cut plans to sell a huge and essential tax cut. He might want to take a page out of Reagan's book and hire the best business minds to come to DC and noodle this and then come up with a sound proposal - shouldn't be difficult to see tremendous slashes in pure government waste.
I hope Mr. Cain is listening and can make necessary adjustments to his proposals even if it means adjusting the catchy phrase “999” itself. The point is tax cuts are most essential, followed by huge cut in government spending, and ABOLISHING OBAMACARE.
I don’t see where there is a ban on congress having a sales tax. The are allowed to lay taxes (...The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises,...)Art 1, Sect 7), the only restriction was on enumeration which the progressives turned over by way of the 16th.
Excellant post and questions!
5) Empowerment zones are already an exception to the taxes. How many others will there be?
6) As a practical reality, how is Cain going to sell this package politically to seniors who pay no income tax and will be hit with a 9% sales tax, and to homeowners who can barely pay their mortgages and will be hit with losing interest deductions?
7) I set the odds that a Republican Congress will pass a national sales tax at 1 in 500. If this part fails, how will the other 9's be adjusted?
8) If Congress decides not to pass the part forcing a 2/3 vote to increase taxes, will he sign the plan? What will happen if Congress does approve the 2/3 part and a later Congress by a simple majority removes it?
I think the term "down in flames" describes the future of 9-9-9. Ron Paul's solution of slashing the government is a long shot, but ultimately a better approach than Cain's focus on raising revenue.
An interesting set of questions.