Skip to comments.Changes Coming to 9-9-9? (One of Cain's advisers says national sales tax a non-starter)
Posted on 10/19/2011 10:09:47 AM PDT by SeekAndFind
Tthe Wall Street Journals Steve Moore, who helped design Herman Cains 9-9-9 tax plan, is having second thoughts about the political viability of the national sales tax aspect of the plan and has recommended a 9 percent payroll tax to replace it.
In an interview with National Review Online, Moore explains that he has come to the conclusion that a national sales tax is just a nonstarter, politically. While he wasnt expecting such a hostile reaction to the idea, Moore concedes that people are naturally suspicious of a new tax.
Cains current plan would eliminate the payroll tax altogether, and he often touts this as a selling point. However, enthusiasm over the elimination of an existing tax has been overshadowed by concern over the prospect of creating an entirely new revenue source for the federal government. Indeed, as Cains poll numbers have continued to rise and other candidates have begun to target him, the new tax argument has been a favorite line of attack.
Moore recommends as easy fix set the payroll tax at 9 percent across the board (a reduction from current levels), while eliminating the existing cap on the amount of income from wages that can be taxed. Moore estimates that this new version of the plan would raise roughly the same amount of revenue as the current one, and argues that Cain would be well-advised to make the change. It is simply a matter of being better off with the devil we know than the devil we dont know.
Thats not to say that Moore no longer likes the 9-9-9 plan in its current form. Id take a national sales tax if it gets [income-tax] rates down to nine percent, he says. But there are some very real objections out there.
Moore acknowledges that despite the criticism from other Republicans, Cain has been a capable defender of the plan its current form. And while he doesnt expect to see the candidate announce any changes in tonights debate, Moore thinks the transition could be relatively smooth. Is it a capitulation? No. Its just a strategic change, he says.
Republican voters want to blow up the current tax system and start over, and Herman Cain is one of the few who has proposed doing that, Moore says. He has the boldest plan out there right now.
I am 100% fine with 9-9-9 becoming 12-12, or something of that level.
Ahh yes, the Moore that gave us Sharon Angle.
Art Laffer endorses 999 and goes over the plan in this article.
Decide for yourselves...
If a sales tax is a non-starter as part of the 9-9-9 plan then how can the Fair Tax ever be considered much less implemented?
Moore is just showing he can’t take the heat, IMO.
Herman Cain on GITMO Prisoners, 999, Moore
I'm not sure what 9-9-9 plan Laffer is talking about but his article speaks of an exemption for people below the poverty level that the plan doesn't contain.
RE: I am 100% fine with 9-9-9 becoming 12-12, or something of that level.
If 9-9-9 EVER becomes law, I’d really like to see WHO will even attempt to change one of those numbers to a higher one.
He’d be singled out for political crucifixion by both high and low income wage earners (who will now be paying something) alike.
9-9-9. Now 12-12. They can’t get their stories straight.
This is a diversion from 15 Trillion, 15 Trillion, Fifteen Trillion in spending.
So, all you conservatives that want to stop the insanity and not drive the country off a cliff,instead, go argue about how to best fund the Federal Government.
by both high and low income wage earners (who will now be paying something)
finally we’d have a system, that doesn’t allow NON-taxpayers, to VOTE for tax increases on OTHERS !
not to mention the other benefits of the plan,
like INSTANTLY making USA produced products 40% MORE competitive in the world...
OK, so if a sales tax is a non-starter politically as part of the 9-9-9 plan then how can the Fair Tax ever be considered politically much less implemented?
I wonder how 9-9-9 would affect a member of congress with all their perks.
Same here. The tax concept should be "We don't care how you get your money, we'll get you when you spend it." (wire transfers to Mexico, et al, come to mind)
Awe heck, they will just approve “temporary” increases.
We know how the suckers always fall for that old line. ;-)
I can accept the following: 9% employee payroll tax, 9% employer match, (both of the preceding dedicated to SS benefits and Medicare), 9% flat rate income tax with an exclusion of Social Security Benefits, plus the 9% corporate.
That’s what I was thinking while reading the article. “Non starter politically”? That’s what Cain is all about. I doubt he’s going to capitulate to a statement like that. He’ll let Chuck Shumer and Mitch McConnell tell the American people why saving 12.00 for every 100.00 you spend is bad for them.
I don’t like any plan which extends federal tentacles into every purchase at every cash register. Far too enabling of bureaucratic expansion, far too nosy, far too capable of per-product & per-customer manipulation.
Better to have the feds just send each state a bill once a year; let the states figure out how they’ll come up with that money. Reduce the IRS to a couple guys writing 50 bills and cashing 50 checks for a few days a year.
Let us hope that Mr. Cain’s staff of advisers has not been penetrated by a saboteur. But Mr. Cain’s main driver does not have two legs because He doesn’t need them. And He is never wrong.
12-12 is too much. 10 Sales Tax on final sales only, and 10 corporate & personal income only.
That 9-9-9 plan is pure horse manure!
We need a national sales tax like we need oh, I dunno, a Kenyan president!
And I ran the numbers a few days ago: without any unusual deductions, except putting the maximum allowable in my 401k, my wife and I paid income tax amounting to 8.7% of my UNadjusted gross income of just over $135,000 last year.
So Herman Cain’s “9-9-9” plan would be a massive increase in taxes to me!
What would that do to pre-tax benefit contributions? They’d be taxed?
What about the contractual agreement between me and my employer that the contributions are pre-tax?
Cain’s Stimulating 9-9-9- Plan (Laffer)
Why I Support Herman Cain For President (Charles Kadlec joins Cain’s economic team)
Reagan Economist Breaks Down 999 Plan
Backing for Cains plan also came from Kevin Hassett, senior fellow at the American Enterprise Institute also praised the Cains proposal for moving towards a flat tax. If someones going to attack the 9-9-9 plan, I would say they should be careful because you are talking about the Republican holy grail, he told the Associated Press.
Rich Lowrie Discusses Herman Cain’s 9-9-9 Plan
Paul Ryan Likes Cain’s Plan
Dick Morris Defends 999
How is Herman Cain’s 9-9-9 Plan Good for America
Club for Growth defends Herman Cain, 9-9-9 plan
Club for Growth President Chris Chocola called the 9-9-9 an outline for a more prosperous and globally competitive America, saying it is both pro-growth and a good starting point on the way to a flat or fair tax.
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
Truth is Government employees don’t pay tax in the first place, it is an illusion, because the money all comes out of the same taxpayer pot in the first place, it works sort of like Union Dues. Corporations likewise pay no tax, they collect tax for the government.
Someone should make a definitive study of the imbedded tax in every product. Cain made a half hearted attempt to illustrate that in the cost of a loaf of bread.
If he had used actual figures that showed the cost before and after the current imbedded tax and the 9% sales tax. Should be easy to illustrate, if what he claims is true, and I believe it is.
The NRST, with a repeal of the power to tax income,
should be THE end game,
with 999 just being the intermediate way to get there.
You do realize that you are paying both of these right?
Why? Because the bulk of their welfare whore voters pay little or no taxes now!