Posted on 10/08/2011 4:09:26 PM PDT by Clairity
The real political defect of the Cain plan is that it imposes a new national sales tax while maintaining the income tax. Mr. Cain's rates are seductively low, but the current income tax was introduced in 1913 with a top rate of 7% amid promises that it would never exceed 10%. By 1918 the top rate was 77%.
Part of Mr. Cain's appeal is his willingness to challenge political convention, and he certainly has with his tax proposal. Voters like that he isn't a lifetime politician but a successful business owner who has met a payroll and created jobs. But his endorsement of a sales tax on top of the income tax is a political gamble that would eventually finance an even larger entitlement state. Better to reform the devil we know—the income tax—than to introduce another devil and end up with ever-rising rates of both.
(Excerpt) Read more at online.wsj.com ...
This 999 plan is a joke. It penalizes large families with the sales tax and still taxes the same amount on income. Retaining the corporate tax is just another burden since all corporate taxes are passed on to the consumer.
The question is “what would prevent the Federal Sales Tax from being increased.”
The answer is: “Exactly the same thing that prevents the income tax from being raised even higher than it i -—self interest. The will of the people. AnD since EVERYBODY buys stuff, EVERYBODY has a direct interest in keeping Sales Tax it low, unlike the Income Tax which only 50% of the population has an interest in keeping it low.
“Why would he need to eliminate the 16th? Congress can simply reduce or increase the rate at anytime.”
That’s what I fear, FritzG, Congress can increase or reduce the rate anytime. That is a big problem.
The 16th needs to be rescinded before we add a national sales tax.
So, does Cain have a plan to abolish the 16th? That’s the question I’m asking and the answer I’m looking for.
Cheers, FRiend.
Herman Cain is a political neophyte. He has no executive experience in government and no record for folks to judge him on. Mere rhetoric does not justify electing someone who may preach conservatism, but hasn’t worked at getting it through a legislature and passed into law. The Founders did want citizen legislators over lifetime politicians. But setting your sights on the ultimate prize, without learning your craft is a recipe for failure.
You’re correct. There is no basis to believe that the national sales tax would eliminate state and local sales taxes. However, and this is why all the “it will hurt the poor” arguments begin to crumble, because we are talking percentage here and not hard numbers, those state and local taxes will be reduced as the price of goods and services significantly drops DUE TO THE REDUCTION IN CORPORATE TAXES.
The best predictor of future direction is past direction.
On the plus side, it can be done. At least when it comes to Gov't speed. I think when they made it 18 for Presidential elections that it was relatively quick, around 8 months I think.
Amen and amen
Cain has specifically stated it would not apply to used items or housing.
I think it’s a fairly balanced article. In fact, most of it is devoted to spelling out the positives in Cain’s plan.
The problem they see, though, is that there is nothing to prevent the tax rates from rising, and there’s nothing to prevent the acceptance of the sales tax part without ever lowering the income tax rate.
Better, I think, to have one new amendment that simultaneously (1) repeals the 16h amendment, (2) prohibits anyone from instituting a legislatively authorized income tax, and (3) institutes a national sales tax with an upper limit of X%.
If it isn’t nailed down by the constitution then the legislature can easily keep raising the rates. They always have in the past. They’ll try again.
And I doubt that the states and cities will be willing to give up their state and local taxes so add that on top.
I just so happen to be one of those Hard Core Capitalists, and there is absolutely NO “Crony” any near or in it! Just a whole lot of sacrifice, hard work and calculated risk. But it is the very reason that America has reached levels that the rest of the World can only dream they would be at.
If I want to change anything, I shut my mouth, roll up my sleeves and do something about it. Contrary to whining about how bad successful business people are or how evil they are. I especially don't voice childishly jealous diatribes or categorize unfair cheap shots at other successful people either.
But never mind a response, It's easy to understand what side of the tracks you have placed yourself on. And you will likely stay there for some time until you learn and more importantly, earn a little respect.
We've already had three years of "Yes, we can."
999 is just a distraction. It is a shell game.
This Cain Train is just too gimmicky for me.
I think you’re right, goat granny. We would need a new breed of congresscritter to take on the illegal fascist IRS bureaucrats and the traitor democrats.
I have a solution, but FR won’t allow me to post it. It would involve specific traitors - lots of them - hanging from lampposts.
I like how all the socialists posting on this thread think they can defeat the tea party candidate by advertising supporting for the current progressive tax code.
Establishment Republicans = Endless Socialism
Kinda like George Washington, eh?
----
Send treats to the troops...
Great because you did it.
www.AnySoldier.com
(An entirely free service)
...it’s an o’bomb’a’cain.
Cain's own website says no such thing. A 9% sales tax with no exceptions mentioned. Link
Seniors on Social Security. The seniors have spent their lifetime paying the payroll tax, but now they are beyond those years. They have no direct benefit from the abolition of the payroll tax. However, they will now have to pay an extra 9% on everything they buy, so for them the plan seems a net fairly strong negative. And without the seniors, Cain will fail and so will 999.
Do I misunderstand? Did I miss something? Cain fans please reply (I basically like Herman a lot!).
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