Skip to comments.Cain's Plan May Not Need a Sales Tax (Part of 9-9-9 causing the most discontent not necessary)
Posted on 11/05/2011 12:21:06 PM PDT by SeekAndFind
Republican presidential candidate Herman Cain has done the nation a great service by proposing major changes in the byzantine way the U.S. government collects its revenue. Cain maintains that his so-called "9-9-9" plan restructures the nation's tax system in a way that significantly boosts real growth. He also claims that his program is revenue-neutral. This means that it is designed to replace the revenues generated by the current tax system.
Restructuring the U.S. tax system along the lines Cain proposes might promote explosive economic growth. However, there are serious problems with tax proposals that claim to be revenue-neutral. One potential flaw is a tendency to assume that individuals will behave the same way regardless of the tax system. If this were true, there would be no reason to change current system.
The main reason to change the tax structure is to remove impediments to economic growth. If the new structure succeeds in doing so, it can improve economic activity and raise both incomes and revenues.
The failure to account for the dynamic impact of a positive structural change in taxes can inadvertently lead reformers to propose changes that increase the overall tax burden. This is the case with the proposed "Fair Tax," which would replace all federal taxes with a national sales tax.
Insisting on revenue-neutrality places the government's need for revenue above the needs of individuals. In an effort to ensure that government receives the same claim to revenue as before, estimates of the necessary national sales tax often amount to 20-30 percent. While the structure of such tax may appear superior to current system, the immediate impact of an abrupt shift to such higher rates risks retarding economic growth rather than promoting it. That will lead to a spiral of less-than-expected revenues, higher tax rates, and so on.
(Excerpt) Read more at americanthinker.com ...
Ok but isn’t part of the reason it’s there is because he wants to transition to a pure consumption tax?
It hurts me but it makes drug dealers and bottom feeders pay..
We must boarden the tax base. As long as we divide the country into payers and payees the structural basis in the political system will always lead to more and more taxes and spending. 6 wolves and 4 sheep voting will always vote to eat the sheep.
Only Cain's plan addresses that structural flaw in our tax code.
The author gets it exactly backwards HIS solution will ensure the structural flaws in the current system are maintained thus leading to ever more taxing and spending.
Will we still get rid of all the excise and punitive taxes, not to mention hidden taxes. All things considered, I’d rather pay a sales tax, providing it isn’t a tax on top of other taxes.
I like the sales tax because it makes all the DEADBEAT pay something into the federal government.
For those that don’t like it, then simply stock up, buy cars, buy boats, buy toilet paper, etc BEFORE the tax takes hold. It’s probably smart to do that anyway, given the direction this country is going with our debt.
Exactly. Cain LOVES the national sales tax, which is why I won't vote for him.
And you’re still a babbling idiot, as every one of your posts demonstrates.
“Exactly. Cain LOVES the national sales tax, which is why I won’t vote for him.”
LOL. But for us in Texas, we would LOVE to see ILLEGALS start to pay something towards the federal government, because they practically get a free ride here (i.e., we love having them)...and this is probably the only way to get that out of them.
It doesn't appear so.
The author correctly identifies the problem with the business tax. It will mean a tax increase for many companies, and even those companies that lose money will find themselves with a substantial tax bill.
That is exactly what you are doing Huck. Hysterically clinging to the existing code because you are too arrogant to learn any facts about Cain’s plan
Abolishing their share of the payroll taxes, as 9-9-9 does, by itself significantly cuts all business's tax burden
Once again, try actually learning the facts about 9-9-9, don't just post fraudulent disinformation.
So how about you quit clinging to your emotion based opinions about 9-9-9 and finally learn the facts.
The biggest problem with the sales tax (beyond double taxation on taxable income already saved) is in those states that don’t have one now.
Since the Polutico scandal was going on, everyone stayed away from it and now that it is apparent that Cain was correct all along, now they go back to the 999 beatings again. Just maybe you might want to investigate it a bit more beyond your emotional knee jerks and pretzel talking points from the other candidates and find that just maybe he is right on this one too.
And the top feeders. The 999 plan defunds the "Crony Capitalists" and makes them pay into the system.
(Go put some ice on it.....)
Phase 2 of the Cain plan is to replace 999 with the FairTax, eliminating corporate and individual income tax, repealing the 16th Amendment, and ending the IRS as we know it.
See here: http://www.hermancain.com/999plan