Herman Cain’s 999 Tax plan has come under a great deal of security and in some cases, ridicule, for being too simplistic, however, it is similar to a 10% plan that was touted as a disaster during the 1980 Presidential Campaign (Spartanburg Herald Journal, September 16, 1980. The main differences between Cain and Reagan’s plan are simple: Cain proposes throwing out the current Federal Tax Code and rewriting it to include a national sales tax, an income tax, and a corporate tax, all at the same 9% rate, Reagan’s plan called for individual and corporate tax cuts in the same simplified approach (which worked very well when implemented – the economy in fact “screamed back into life”. That said Reagan left the tax code in plan, which, as Cain has correctly pointed out, is subject to manipulation and change.
The Calculator, also simplistic, estimates the hidden costs of taxes in goods, those taxes that are passed on to the consumer by corporations in the U.S. (Those that are left), then adjusts the costs of the goods, based on a 9% corporate rate. Apparently, there’s a bit of common sense involved in this, as well as a lot more in details, (one the full plan is read), that has safeguards in place for families, and those earning (or not earning) at the bottom of the economic scale. In fact, not unlike Regan’s plan, this type of reduction in taxes, would allow for more cash in hand. Of course, the plan is not perfect, and being no so-called expert (as there are so many of those weighing in), one must remember, that Mr. Cain has offered a plan – a plan that has promise, and a plan that, without throwing out the tax code, has a similarity to Reagan’s. Being no fan of taxes, hidden fees, and the like (or fees called taxes, see Governor Mitt Romney), it is refreshing to find that at least someone has a plan that reduces tax rates across the board, and also addresses the problem of the hidden tax that corporations pass down to consumers.
Two main points to consider: Cutting the Corporate tax rate to 9% would invite those companies now fleeing overseas, to repatriate, jobs would then naturally follow, and secondly, the “trickle down” effect would be a an overall reduction in the price of consumer goods, which when taxed at 9%, with the elimination of the current tax code, the result is a win for individuals across the economic spectrum. The unintended consequence, the dollar would strengthen as a result, as it would stretch further, and therefore, be worth more.
Live long enough, or to be more to the point, having lived long enough to experience the Carter Administration, followed by the Reagan Administration, and to have personally seen the surprising difference (this does take time) in personal income for those who were not earning $100,000 a year (see 1980), in the costs of food, clothing, and durable goods- under Carter, individuals abandoned cars, gave up that new fridge, (or old one for that matter) and concentrated on paying the rent and eating. (Similar to what we are now faced with). Under Reagan, at first, it was rocky, given the constant media drumbeat that we, as a nation, were doomed, but once Reagan’s plans were enacted, it was a refreshing difference. Being able to save money in the bank, pay off creditors, and actually buy that new car, while having a fridge stocked – night into day – literally.
Therefore, it is suggested that one take a second hard look at Cain’s plan, (which is available on his website), use the calculator (no it is not entirely accurate, but remarkably familiar) and consider the possibility.
To calculate what one might pay for goods under Cain's 999 Plan, follow this link:
999 Sales Tax Calculator
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment