Posted on 10/10/2011 6:46:18 AM PDT by SeekAndFind
“I have to imagine that states would make changes in quick order.”
What changes do you have in mind? Cain’s 9-9-9 plan is definitely a radical restructuring of the federal tax system, but it’s not clear how it would affect state revenue.
Oh, and the “business never passes on savings to consumers” types? Am I the right forum?
Yeah, let's look at some basic business. Any CEO will tell you that his primary responsibility is to his shareholders. Not his customers. Not his employees, corporate BS to the contrary notwithstanding. But to his shareholders. He performs his best service to his shareholders by keeping their stock prices high and there dividends flowing. The best way to increase stock prices is to increase margins. Best way to increase margins is to lower costs. That, too, is basic business.
All the evidence you need to show that your contentions are hopelessly naive is available by looking at business activities recently. Tens of thousands of layoffs by businesses to reduce expenses, many at businesses already making a profit. Can you state with certainty that those cost reductions resulted in lower prices to customers? Not a chance. How about this example. Two years ago my company levied an across the board wage reduction of between 5% and 15% in order to reduce costs. This was in addition to thousands of layoffs. Do you know how much they reduced the prices they charged to the client I was supporting? Zero. Not one cent. In fact they raised prices by the contractual limit during the two years that followed. If it is simple economics and business then why didn't they cut their prices? If it's so simple then why didn't Cain's cost-cutting at Godfather Pizza result in across the board price cuts at their stores?
You are living in an imaginary world. Your claim that lower taxes on businesses will positively result in lower prices to consumers is idiotic. And your claim that the taxes on the majority people will not go up under Cain's scheme is flat out wrong.
I am talking about Cain’s 9-9-9 plan and its effect on seniors. You’re more than welcome to demand that on a Cain 9-9-9 thread we talk about Perry, but we’ll just ignore your demand. Like I told you the other day, it’s time to examine Cain’s plans, and you don’t get to shout NO! NO! DON’T LOOK AT CAIN! LET’S KEEP TALKING ABOUT RICK PERRY!
Dividends? What exactly do you mean by "distribution"?
Do you understand how the free market works?
In a perfect, I would eliminate the corporate income tax and the capital gains tax. On the individual income tax side I support a simple flat tax that would result in almost eliminating the IRS as we know it. Doubtful we'll ever see a true flat tax, but its by far the best tax system available that will work for a free market, capitalist Republic like we have in America today.
Right now I’m leaning towards Cain but I’m not yet on the “Cain Train” and I’m wary and I have questions.
But yes, I think Cain is very good. Very conservative and very articulate.
Is he very viable? I don’t know. His he truly serious about President and not Vice President? I don’t know.
We’ll know more after the next debate.
As for Perry, yes, I like Perry too, but I think it’s right now very difficult to consider him viable. I know he still has a chance to make a comeback but his problem isn’t the lies that have been told about him (and there are plenty of those) but his seeming inability to articulately respond. If he can’t do that, he’s out. Period.
It didn't? Why not?
Either you trust the free market to deliver the best prices or you favor socialism or some other government-run pricing system. There are no in-between choices.
What will make the market force him to do it now? Just because some corporations have seen their taxes go down? What is to prevent those corporations from treating a reduction in taxes just like any other reduction in expenses and use it to increase their margins and their profits? Or are profits a dirty word for you? Why would corporations not use this windfall for other business purposes - expansion, increase dividends, buy back stock, whatever? Why would any business look at that and say, "Gee, we need to keep our margins flat and our profits stable by passing this savings on to our customers." Can you answer that please?
No, I do not prefer 35-35-0 to 9-9-9.
I think 9-9-9 could be a good idea... though I have to think about the idea of a fed sales tax, which we don’t have... though I admit, people now paying zero fed taxes will at least start paying when they spend their dole money on beer and pizza.
My problem with 9-9-9 is that it seems to tether a new candidate to a very specific proposal and I wonder if that’s a good idea.
Or more likely the competitor will use the cost reductions to improve their bottom line as well.
Very simple, they will do it to stay in business.
Nobody does. So how do we know what the real facts are?
Nice try but rumor and innuendo are still rumor and innuendo no matter how desperately you want to believe them.
Yes well what could I possibly teach you about desperately wanting to believe things to be true?
I read the article.
Demand for labor will more than make up for the increased taxes on labor.
OK.
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