Skip to comments.Where Cain's 9% Came From
Posted on 10/15/2011 10:09:54 AM PDT by rob777
There has been a lot of talk regarding where Cain got his 9% number for the income tax, sales tax and corporate tax. Apparently a full analysis was done by economist and former assistant to the director of the Office of Tax Analysis for the U.S. Treasury Gary Robbins. Robbins thinks that the plan would work economically, but would not sell politically:
Youre trying to go to a system that taxes income once and only once and quits double-taxing savings, Gary Robbins told POLITICO on Wednesday. Thats something that can really juice the economy, its probably worth 15 percent in growth. The problem with the big-bang changes like that, the flat tax or the fair tax, is that they are so alien to the current system that it would be a great big shock.
Though Robbins says the plan would work fiscally and economically, he believes people would never accept such drastic changes. http://caucuses.desmoinesregister.com/2011/10/12/herman-cains-9-9-9-analyst-its-a-theory-not-a-solution/
The actual number that would allow the plan to be revenue neutral is 9.1% (See table 10c on page 8: http://www.politico.com/static/PPM191_111012_999scoringtables.html
Even if the plan worked politically, it would not work fiscally. If it is revenue neutral then it would still leave a deficit of well over a trillion dollars. I’ve heard no specifics on how Cain would eliminate that. Of course, none of the other candidates have done any better.
So what's your point?
You have $5.00 more in your wallet when the delivery kid shows up.
Mr Cain is calling on the Super Committee to implement his plan.
How does cutting out the Congress and reducing decisions to a panel of 12 represent “checks and balances”?
So, people can take a lesser-paying job, work fewer hours, etc., in order to control how much income tax they pay.
Or maybe the 9.99 pizza will be $7.00 because of all the hidden taxes already built in?
My point is that its a double tax on current savings.
Perry should drop out. Otherwise, he’s just playing spoiler to siphon away just enough duped conservatives to throw the nomination to Romney.
So, stop slinging mud at real ideas and get to work on convincing the phony from Texas to go back there.
Which cuts demand for the goods produced by business. What effect will that have on the economy?
Not good enough. This is where my 99 Plan comes in. Taxes can't go up unless 99% of the Congress votes in favor of it.
Show me the math.
Thank you! I didn't know that and it will make a HUGE difference. Herman Cain needs to make sure this is clear in the next debate. It changes everything.
The federal tax on your earning goes down to 9% from whatever it is now, most likely around 25%.
Read Cain's entire plan, not just the consumption tax part.
I am not slinging mud.
I am asking serious questions.
Consumption may be negatively impacted, but an economy that relies on 70% of GDP as consumption is unsustainable.
The 9-9-9 plan with allowed corporate deductions only for materials purchased here in the US will stimulate production again rather than relying on unsustainable credit-based consumption.
Every manufacturer publishes their products as Manufacturer’s Suggested Retail Price (MSRP). Just call a manufacturer and ask to purchase an item directly from them and they will have you contact a dealer first. Unless you have the volume to be considered an Original Equipment Manufacturer (OEM) customer, they will not sell to you.
That is determined by the distributor and dealer networks the manufacturer wished to operate under including each level of distribution to the retail market.
All have their preferred markups included. Interestingly, under the current system, each level also has its federal, state and local fees, taxes and regulatory costs added to the equation as well.
“but would not sell politically”
I’m guessing this means it would not sell to our “professional” politicians who have been used to asking for and getting blank checks at the taxpayers peril. I do think that “we the people” are ready to buy into this plan and tell the “professional” politicians where to stick it.
If you were a little more concerned about yourlife as well as those you hold idea, how about educating yourself and reading the two FairTax books and how it works in detail instead of drinking talking points Kool-Aid.
For the record, I oppose a national sales tax. However, I haven't lost my objectivity. Cain's numbers do add up. It sickens me to see opponents lie about them.