I say it’s about time (Via Jammie Wearing Fools):
People have been waiting for a Herman Cain TV Ad, well here it is people.
I honestly don’t know if this is planed to be a tv ad, but it should be in any case. Any Cain campaign stuff reading this should think it over and send the suggestion to the top. It is simple and to the point.
So the URL of that video takes you here and to this video:
It used to be that the sole purpose of the tax code was to raise the necessary funds to run government. But in today’s world the tax mandate has many more facets. These include income redistribution, encouraging favored industries, and discouraging unfavorable behavior.
To make matters worse there are millions and millions of taxpayers who are highly motivated to reduce their tax liabilities. And, as those taxpayers finagle and connive to find ways around the tax code, government responds by propagating new rules, new interpretations of the code, and new taxes in a never-ending chase. In the process, we create ever-more arcane tax codes that do a poor job of achieving any of their mandates. …
(Crunching The Numbers) In the recent past, federal tax revenues from the personal and business income taxes, all payroll taxes, and the capital gains, gift and estate taxes have averaged $2.3 trillion, while gross domestic product has averaged about $14.5 trillion. The total revenue from these taxes as a share of gross domestic product averages around 16%. Sometimes it’s a good deal higher, as in the boom of the late 1990s, and sometimes its lower, as in today’s “Great Recession.” But a number in the 16%-19% range is as good as you’ll get under our current tax code.
By contrast, the three tax bases for Mr. Cain’s 9-9-9 plan add up to about $33 trillion. But the plan exempts from any tax people below the poverty line. Using poverty tables, this exemption reduces each tax base by roughly $2.5 trillion. Thus, Mr. Cain’s 9-9-9 tax base for his business tax is $9.5 trillion, for his income tax $7.7 trillion, and for his sales tax $8.3 trillion. And there you have it! Three federal taxes at 9% that would raise roughly $2.3 trillion and replace the current income tax, corporate tax, payroll tax (employer and employee), capital gains tax and estate tax.
The whole purpose of a flat tax, à la 9-9-9, is to lower marginal tax rates and simplify the tax code. With lower marginal tax rates (and boy will marginal tax rates be lower with the 9-9-9 plan), both the demand for and the supply of labor and capital will increase. Output will soar, as will jobs. Tax revenues will also increase enormously—not because tax rates have increased, but because marginal tax rates have decreased. …
This is the type of tax increase I wholeheartedly support. I support collecting more in taxes from people with high incomes who choose to actually pay taxes at lower tax rates than use lawyers and accountants to avoid taxes at higher tax rates. Some tax revenues at low tax rates is a heckuva lot better than no tax revenues at high tax rates.
While the 9-9-9 plan has captured people’s imaginations at this moment, it’s not all that different from California Gov. Jerry Brown’s 13% flat tax when he ran for president in 1992. As you may recall, he came in second behind Bill Clinton in the Democratic Party primary.
In 1986, President Reagan passed a major tax-reform bill that lowered to 28% from 50% the top marginal personal income tax rate. The Tax Reform Act of 1986 also raised the lowest marginal income tax rate to 15% from 11% and closed many loopholes, making for a flatter tax structure. Reagan’s bill passed the Senate in a landslide 97-to-3 vote. Who says a flat tax can’t be a bipartisan proposal?
If this video and Art Laffer’s endorsement doesn’t get you excited about the 999 Plan, I honestly don’t know what will. If the 999 Plan was passed, there will not be seas big enough for all the business coming our way. I even have a business idea myself.
I support Herman Cain. I have been since he announced that he would be running. I’m on the CainTrian until it reaches the White House. I will then be a tireless supporter of the 999 Plan. Herman Cain might not be a polished politician, but that is what I love about him. Cain is a man who makes mistakes, like me. Personally, he is the only person running right now that I would love to sit down with a beer. The 999 Plan shows he is also bold and thinks out of the mainsteam box.
Some of us is waiting for the second coming of Ronald Reagan. I am not one of those people, for he is not coming. Leave Reagan where he is, resting in peace. We should be instead looking forward to the future and for a new kind of leader. I believe Herman Cain is that leader. Climb aboard this train with me, and we will the conductors of our own future.