A couple people have commented that one thing they don't like about Cain's 9-9-9 plan is that the national sales tax is new, and a camel's nose under the tent. While it starts at 9%, what's to keep it from rising - to Europe's 17%, or more?
Cain has a good answer - transparency. It would be obvious to everyone that the tax had just gone up. That's in great contrast to today's tax code, where large changes are made every year to the tax code. One sound bite I remember from yesterday's interview (I don't know if it's true, but it sounds plausible) was that the tax code contains ten million words. That number changes every year, and the changes always result in more taxes being owed. A lot of people only find out when they file their tax returns.
With Cain's plan, this sort of "back door" tax increase becomes much more painful for Congress.
Is increased transparency a panacea? Of course not. Is it an improvement? Seems that way.
8 comments:
It may be an improvement, but the camel's nose is still in the tent at that point. It may be readily apparent that the tax grew, but it will still have grown.
For what it's worth, I still think his plan is the wrong answer. And I still respect him immensely for being the only guy willing to come out with a concrete plan that the rest of us can argue for or against. Even though I happen to be on the "against" side.
It does help that it's _mostly_ a good idea. National sales tax isn't, but even revenue-neutral tax simplification does a lot to help our side, in the long run.
I'd much rather have a president that we can have an honest disagreement with than one who spends all his time peddling nebulous BS. (Yes, I'm thinking of Obama. And also of Bush. And Clinton. And the other Bush. Not to mention all the candidates who ever opposed any of them in general elections and most of the ones in primaries.)
Simpler would definitely be an improvement. Most folks have never tried to navigate the actual tax code beyond the instructions for a 1040 form. I had to spend a great deal of time with the actual code as an Accounting Major in College and it is indeed a friggin' nightmare.
Transparency- They keep using this word, I do not think it means what they think it means. Remember Obama's Transparent Government? That recieved a Transparency Award behind closed doors?
How can you tell a politician is lying?
The Cain 9-9-9 Plan is a half step to the FAIR TAX Plan that recognizes it is the end consumer who pays all taxes, even those who think the only tax they are paying is income tax in a lower tax bracket (if any at all).
It can not be explained in a 5 second sound bite any more than the current tax code.
Fix the tax code? Simple. No more payroll deduction...everybody writes a check for what they owe at the end of the year.
And election day will be moved to April 16th.
Problem solved.
Abolition of the income tax is what's important to me. There are plenty of ways to collect revenues without an income tax system that punishes success and rewards failure. My home state of Texas is making it work.
The Cain 9-9-9 Plan is a half step to the FAIR TAX Plan that recognizes it is the end consumer who pays all taxes, even those who think the only tax they are paying is income tax in a lower tax bracket (if any at all).
Yep. Cain & Boortz have both said as much, which is one big reason I support him.
A consumption tax is MUCH more fair than an income tax. As Boortz points out in at least one of the Fair Tax books, it brings everyone in on it--even if you earn your money illegally, chances are good you spend at least part of it legally.
Nor do I worry about obfuscated increases. Put everyone's hide in the game, & everyone will care. We see it here in SA every time there is a proposed sales tax increase.
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