“Herman Cain’s 9-9-9 plan… :
“… such a system provides the least avenues to avoid paying taxes, yet also maintains the strongest incentives for work effort, production, and investment.”
… which is the One Thing that will be Ignored by all Liberals when they say it is a bad plan. I have heard various rationales that involve the simplicity of Cain’s plan – “Too simplistic; and it’s a naive, childish notion!” versus the complexity of the current system. They say that large corporations will still avoid paying taxes, because they truly can’t picture a world in which Corporations don’t have a million loopholes to choose from. They are certain that corporations will get out of their fair share, and that the rest of us will be stuck with the 9% personal tax, and 9% sales tax increase.
But, if Cain’s plan simply removes all loopholes, how will taxes be avoided?
Now, Cain’s Plan will certainly hurt certain sectors of employment. Tax lawyers and accountants will be hard-hit by the complete loss of tax regulations. Every corporation will have a whole lot of pink slips for those particular employees (- aside from those who are able to form a specialty in foreign tax law…..!)
“…the strongest incentives for work effort, production, and investment.”
I, personally, am looking forward to being able to find a job in a functional economy, and being rewarded for all my hard work!
The quoted economist also says,
“Mr. Cain’s plan is simple, transparent, neutral with respect to capital and labor, and savings and consumption, and also greatly decreases the hidden costs of tax compliance. There is no doubt that economic growth would surge upon implementation of 9-9-9.”
“Herman Cain’s 9-9-9 plan would be a vast improvement over the current tax system and a boon to the U.S. economy… The goal of supply-side tax reform is always a broadening of the tax base and lowering of marginal tax rates.”
Therein lies the source of Liberal objections to Cain’s Plan. Despite the plan being very transparent ( a favorite goal of Liberals’ Government visions), and simple (the long-sought simplification of the tax code), it embodies supply-side economics, which Liberals hate with a passion because they associate it with Reagan and Bush Sr.
That’s it – they’re really no deeper than that in their objections. Yet wouldn’t broadening the tax base be the greatest form of egalitarianism there could be? We all benefit from government, we all pay for it. Such a simple and revolutionary idea! : )
And, all who pay would receive a benefit of a lower tax rate…!