Well, by now, you all know that <a href=”http://www.redstate.com/thesophist/2011/09/26/the-herman-cain-victory-scenario-in-which-i-return-to-the-fold/”>I’m in the tank for Cain</a>. Which is not to say I’m in the tank against anyone else in the field just yet. Well, except maybe Ron Paul. But that’s another diary.
So feel free to disregard this whole line of thinking as partisan pap designed to push my candidate of choice. Although, keep in mind that I want Cain to be your second choice, if he can’t be your first, as I’m sure your first is still infinitely better than Obama.
In any event, there is a criticism of Cain that has been leveled throughout Redstate that I find… baffling. So this is my problem with the people who have a problem with Cain’s 999 plan.
You can find quotes in comments throughout this site, but the essential criticism is something like this:
I like the 999 Plan in theory. But there’s no way I’d support a national sales tax AND an income tax, because we just can’t trust politicians not to raise taxes on us. It might start as a 9-9-9 plan, but will end up as a 29-29-29 plan in short order.
An entirely sensible position, to distrust politicians. At the same time, there are a few things really… off… about this particular line of criticism.
If You Assume The Policy Will Be Corrupted…
First of all, if the base assumption is that no matter how great an idea might be, DC politicians will find a way to corrupt it… why is the 999 plan singled out for special treatment? What makes anyone think that Romney’s 87-page PDF Economic Plan won’t also be instantly corrupted and changed? Or the FairTax that many people are gung-ho for, claiming that it is superior to the 999 plan. Superior how, if the assumption is that Congresscritters will instantly transform it into a basket of giveaways and boondoggles? Or even a Flat Tax?
If the starting point of evaluating any policy proposal or plan is that Congress will get in there and mess it up, I honestly don’t see any reason to support any candidate on the basis of any issue. Because we’d have to assume that his/her great idea would just be transformed into a steaming pile of dung by Congress.
Which Leads To… Vigilance of the People
One particularly amazing critique of the 999 Plan theorized that we’d have President Cain coupled to a Democrat Congress, which would then result in the 999 plan becoming the 90-90-90 plan out of the gate. C’mon people; are we seriously contemplating that we’d all go to work trying to get the GOP nominee elected President, but skip out on all of the other races such that we’d end up with a GOP President and a Dem Congress?
The larger point — one which I’ve raised — is that the only way that the 999 plan (or any other plan on any other issue) is not transmogrified into some atrocity is the vigilance of the electorate. There is simply no way to trust a politician — no matter whom, no matter what — to do the right thing time and again. Absolute the only way we as a nation can defend our rights, get the policies we want, and prevent corruption by politicians is to be vigilant against such things and to keep up the pressure on all of them to do the right thing.
I’ve always thought that the Tea Party movement was a Great Awakening of sorts that signified that at least a very large part of the population had turned the corner on the vigilance issue. People who had never paid attention to politics suddenly became activists. Folks who had tuned out the Clinton years, the Bush years, even the Reagan and Carter years suddenly educated themselves on the issues, took to the streets, organized, and started to make their desires known.
The critique of 999 plan on “implementation” grounds simply assumes that these people — you and me — would work our tails off to win the election in 2012, and then go back to sleep. “Whew, we got Cain/Perry/Romney/Whomever into the White House! Our job is done here!”
If that’s true, then we’re all wasting our time. I like Cain; I trust Cain; I want President Cain. But I do NOT trust him enough to lay it all down after the election and go back to watching American Idol. No, sorry. I’ll trust him, but will stay on top of what he actually does once in office to make sure that he does what he promised, that his 999 plan doesn’t transmogrify into something bizarre, and so on and so forth. As Reagan once said, “Trust, but verify.”
Isn’t this the lesson of the past 40-50 years? That if we the people tune out government, bad things happen? And we find ourselves suddenly wondering, “How the hell did we get here?” Corruption, like rust, starts off small and hard to notice. And like rust, we can’t wait until the damn thing has taken over half of the car before working on it.
To paraphrase Milton Friedman, it isn’t so much that we need to elect the right people, but that we need to make it politically profitable for the wrong people to do the right thing. By extension, we need to make it politically painful for even the right people to do the wrong thing. And the only way to create that environment is through vigilance.
No one told me this was going to be easy.
Which Leads To… Why Cain Is Great
Surprise! Well, not really, I’m sure.
I’m likely not paying enough attention to all the other candidates, but I have to say, of all of the people in the race today, only Cain gives me the impression that he gets this crucial fact about the relationship between government and the governed: vigilance.
Watch this video of Cain speaking to supporters in Orlando before the Florida Straw Poll. It’s a homemade video so the sound and camera work aren’t the best, but you can still hear him clearly. Notice how he talks about needing the people to apply the heat so that Congress will see the light. Now watch this homemade video from Smart Girl Summit 2011, where he lays out how exactly he’s going to get his 999 plan implemented. (Yes, the sound and picture are not great.) He makes it plain that he’s going to explain the plan to the American people, and that the American people will be the ones demanding that their elected representatives do the right thing.
“All I can do is tee it up, and make sure y’all understand it…. If people understand it, they will support it and demand it.”
This is exactly the stance of a consumer-oriented business executive. When you’re selling burgers and pizza to average Americans, you can’t dictate to them what they should want. You have to listen to what consumers want, create that product or service, explain through advertising and marketing that what you’ve got is what they want, and then hope they demand your product.
Even before he ran, for example at the 2009 Redstate Gathering, Herman Cain has been hammering home to those of us in the room our need to be Informed, be Involved, and be Inspired. Not just for a year or two, but forever.
So many of the other candidates seem to me to be saying, “Listen, elect me and I’ll make sure these problems go away. You can relax, once I’m in office.” It is the approach of the professional elite, like my accountant: Hire me, and you won’t have to worry about complicated IRS tax rules, because I’ll take care of it for you; because I know more than you do — I’m an expert. And why not? Romney is an incredibly smart private equity investment operators. Bachmann was an accomplished tax lawyer. Paul is a medical doctor. Gingrich has been Speaker of the House, and has a Ph.D. in history. Their professional lives revolved around other elites, or in being the expert who takes care of a client.
None of them ever had to organize, mobilize, inspire, and somehow get a large group of average Americans to believe in a vision, to carry out tasks, and to work together to succeed. Cain did just that in his business career, most of which was spent in the fast food industry. Think it’s hard to organize activists and voters? Imagine how hard it was to organize Burger King workers and to get them to move in the right direction, together, as a company.
It’s one reason why I believe in the Cain candidacy: the guy isn’t running to give us anything; he’s running to make us demand things we want.
Criticize The Plan On Its Own Merits
Bottomline is that I would appreciate any criticism of any plan — whether it’s Cain’s 999 plan, or Romney’s detailed plan, or any other plan that candidates will put forth — on its own merits. We can’t have the central criticism of a plan be, “Well, that plan wouldn’t allow me to go back to dreamland where I don’t have to worry what the politicians are up to.”
For example, you could reasonably argue that the 999 plan’s national sales tax component would create a larger bureaucracy. You could argue that regressive taxation is immoral (the Lib/Prog position). You could maybe argue that corporations don’t deserve tax breaks. Whatever you want to argue is fine, but let’s have it be on the substance of the plan on its own merits, rather than on whether Congress will corrupt the hell out of it or not.
That isn’t fair. And it betrays a lack of commitment to pay the price for liberty: vigilance, eternal vigilance.
No matter who is in office.
-TS
Victoria Coates
Daniel Horowitz
Well Written
Craigpennsylvania (Diary) Wednesday, September 28th at 12:10PM EST (link)Thanks for a well written thread. As our primary in Pennsylvania isn’t until next May, much of the field will be set by the time we get to vote here. That being said, I have a GREAT deal of respect for Mr. Cain.
As for your assertions, you are spot on. The 9-9-9 plan is no more likely to be screwed wiith than any other program.
Craig, just remember
mort Wednesday, September 28th at 1:22PM EST (link)to vote for delegates who will cast a ballot for Cain in August when the vote really counts
Great point.
barleycorn (Diary) Wednesday, September 28th at 12:25PM EST (link)“If the starting point of evaluating any policy proposal or plan is that Congress will get in there and mess it up, I honestly don’t see any reason to support any candidate on the basis of any issue. Because we’d have to assume that his/her great idea would just be transformed into a steaming pile of dung by Congress.”
I love it when someone is able to take on a stupid argument and just freeze it in its tracks.
amen TS and 'eycorn, all of the best laid plans of mice and men WILL BE CORRUPTED
Mike gamecock DeVine (Diary) Friday, September 30th at 1:17PM EST (link)even under our Constitution. Our system best corrects bad plans and preserves good ones, but its been all damage control since Eve bit the apple and always will be.
YES!, the vigilance of the people is always required to preserve the correct course, and clearly We the People have not been vigilant in sufficient numbers on all kinds of fronts (Debt, spending, judges, current tax code etc) for decades to one extent or the other, so that we are now at the point where the usual significant difference between Dems and DemsLite (ie GOP) is no longer significant since we have reached a tipping point where we need radical reversal to save ourselves from even greater woe that we are and have been experiencing in this Great Depression II.
The fatal flaws, among others imho. of the FAIR TAX are the impossibility of a Const Amendment repealing the 16th and the large rate required to pay for the government in the 21st century.
But the single digit size of the 9-9-9 rates and that it rids us of FICA and so many subsidies and deductions makes it more than acceptable to me.
No matter what system we had, we would have to periodically clean up the mess pols make buying votes.
I do think that the 9-9-9 plan should be scrutinized on how much revenue it would actually raise (and I do think it would increase growth dramatically) and think it might require some tweaking re mortgage int, health care costs and charitable deductions as well as a possible standard deduction for the very low income, but that beats the unwieldly big brother pre-bate and inflation risk of the FAIR Tax by far imho.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Not really
balloonjuice Friday, September 30th at 6:32PM EST (link)Because the Cain 999 plan adds a new tax that was never there before — the national sales tax. I would be willing to consider a 999 plan if and only if there were a balanced budget amendment in the US constitution. Will Cain support that? If he will, then perhaps we can talk.
Cain is on record
TheSophist (Diary) Saturday, October 1st at 9:27AM EST (link)as supporting an amendment to control spending. He’s more in favor of a spending cap amendment, but a balanced budget amendment is better than what we have today.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
It is not just the 9 9 9 plan
Kyle-MI (Diary) Wednesday, September 28th at 12:38PM EST (link)I am probably different than a number of other people concerned about this plan because I am opposed to a national sales tax in and of itself. Sales taxes are by their nature insidious.
For example, ask anyone how much they paid in income taxes last year. After checking with their accountant or their records, most can give you a number and tell you what percentage of their income goes to the federal government. Ask anyone how much of their income went to sales taxes and most people do not have a clue.
In addition, a sales tax works on very small chucks of money at a time. It is easier for lawmakers to gradually ratchet up the sales tax rate little by little. How many people really care whether they are paying $1.00 or $1.01? Yet, the cumulative effect is huge and allows the government to expand.
Sales taxes tend to be quite stable
Craigpennsylvania (Diary) Wednesday, September 28th at 1:11PM EST (link)Pennsylvania’s Sales Tax has been 6 % for as long as I can remember, at least 40 years.
I have seen neighboring states try to raise sales tax by 1 percent, and a HUGE public outcry occured.
Income taxes are far more volatile than sales taxes.
The concept that people know what he/she paid last year regarding income tax just isn’t true. I just asked 10 people here. Not one knew the answer, which is to be expected.
Perhaps you find the concept of taxing the underground economy (meaning people who work in cash industries and hide this income) to be insidious?
sales taxes
mort Wednesday, September 28th at 1:28PM EST (link)have always been viewed by me as the fairest tax of all. You actually have to spend money to pay it, therefore if you have no money, you pay no tax. (albeit, some will just run their credit cards up).
Does a sales tax generate proportionately from the rich as our liberal friends are concerned about?
Is it really fair
Kyle-MI (Diary) Wednesday, September 28th at 1:55PM EST (link)Compare it to a straight flat tax. Everybody pays the same portion of their income. With a sales tax, the rich have a lot more income to put into savings. Someone living from paycheck to paycheck, however, will be essentially be taxed on all of their income.
I see that
mort Wednesday, September 28th at 3:10PM EST (link)and I see that if the wealthy put too much in savings instead of purchasing goods and services to avoid paying consumption taxes, then it would hurt our economy. But would it be any different than now, when their money is taken by cooperate and other taxes before they get a chance to spend it? And even if they did increase their savings to avoid consumption taxes, wouldn’t those investments stimulate the economy? There is so much we don’t know. makes me feel like a congressperson.
No downside.
BA Cyclone (Diary) Friday, September 30th at 6:31AM EST (link)The sales tax encourages savings by all.
Savings are a major vehicle for private investment.
The sales tax encourages you to find alternate uses for your money — maybe you buy a set of used golf clubs or the used car instead of the brand-new model.
Whereas “the rich” who can most afford to pay sales taxes every time will not really change buying habits because of a 9% explicit tax.
“If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions.” — James Madison
“Electing Republicans who don’t have the courage of their convictions may be easier in some circumstances, but it won’t save our country.” — Jim DeMint
BA Cyclone’s blog
BA Cyclone on Twitter
State competition
Kyle-MI (Diary) Wednesday, September 28th at 1:50PM EST (link)On state sales taxes, state compete with one another which helps to keep the rate in check. On the federal level there will be no competition.
For income taxes, people at least see once a year how much they are paying. I never said they would know off the top of their head. They will be more generally aware of income taxes than they are of sales taxes.
You see a "sales tax" every time you buy something.
BA Cyclone (Diary) Friday, September 30th at 6:36AM EST (link)It’s right there on the receipt.
You don’t necessarily see your income taxes unless you know how to read your paystub — and actually look at it — and maybe if you do your own taxes you’d see how much you paid out each spring.
I didn’t know my net-effective tax rate until I started using TurboTax several years ago, and it calculates that for you without asking at the end. Otherwise I never even took the time to do that one calculation at the end when I did they by hand with paper forms.
No, I think sales taxes (except for fuel taxes) are about the most obvious taxes we pay in the economy — as long as they are the exclusive variety (tacked on at the register and listed separately).
“If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions.” — James Madison
“Electing Republicans who don’t have the courage of their convictions may be easier in some circumstances, but it won’t save our country.” — Jim DeMint
BA Cyclone’s blog
BA Cyclone on Twitter
Yes Kyle, there is no comparison between state and federal sales taxes for the reasons
Mike gamecock DeVine (Diary) Friday, September 30th at 1:22PM EST (link)you cite, and also due to the sheer size of the federal one if that is the main revenue source doe to the inflation disruption and the over-taxing of consumption in an economy that will always be largely dependent on growth via consumption. If we were Sweden and lived under the security umbrella of the US, then consumption wouldn’t be so critical, but the USA must grow to have the money to stay free.
more later
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
See, now, this is an argument on the merits :)
TheSophist (Diary) Wednesday, September 28th at 2:18PM EST (link)I have a number of problems with the income tax.
First of all, we’re told by well-meaning people of all political stripes that we should tax ABC in order to discourage its consumption (see, e.g., tobacco, liquor, gasoline). So if we inherently believe that taxing something discourages it, why the hell would we want to tax income?
I’m perfectly fine with taxing consumption of all sorts, because we do sort of want to discourage consumption in favor of investment. That’s true whether we’re talking about the Federal Government, or my 6-year old’s allowance: saving more might be better, so you can spend it on something you REALLY want, or REALLY need later.
Second, there is no tax I can think of that is more open to class warfare than the income tax. (Maybe the inheritance tax?) With income tax, it’s perfectly rational to make arguments like Obama makes: “At some point, you’ve made enough money.” It’s hard to argue that some guy making $15 million a year would find it hard to get by on just $5 million a year… so what’s wrong with a 66% tax rate?
Meanwhile, that family struggling to make ends meet at $40K a year shouldn’t have to fork over a bunch of dough to Uncle Sam, should it? C’mon man, have you no heart?
It’s totally insidious. It leads to what Tocqueville warned against, that the end of the Republic is when the majority realizes that it can vote itself largesse from the public treasury.
With any of the major reform ideas — FlatTax, FairTax, 999, whatever — one thing I do like about all of them is the idea that we eliminate the class of voters who have no skin in the game at all.
Third, I studied a bit of tax law/policy in law school. And one of the trickiest things about income tax is defining “income”. It’s quite amazing how creative smart tax lawyers can get about classifying revenues as income or not as income depending on what the client’s needs are. There are timing issues (WHEN was the income earned) that absorb the brainpower of some of our best and brightest.
Now, a sales tax might not necessarily eliminate all of the timing and classification problems, but it sure is easier to identify when a sale occurred. Did the cash register ring? You have a sale. Did you invoice someone? You have a sale. Pay up, sucka!
The administrative burden has got to be smaller; it just has to be.
Fourth, and this is really the SICKEST thing about our current system. I think an enormous portion of the American public thinks of a tax refund as free money from the government. The way we’ve implemented the income tax is brilliant, but incredibly insidious. Taxes are withheld from the paycheck, and then once a year, the government sends you a check for the amount you’ve overpaid.
There are ads that run on the radio and TV every year around tax refund time telling people “Hey, come spend that tax refund check with us!” as if the recipients had won some sort of a lottery, instead of having gotten shafted for months and months of interest owed on THEIR money the government held in its bank account.
If you’ve EVER been in business for yourself, and have to write the IRS an actual check out of your actual checking account, you realize pretty quickly that you’re paying a whole lot of money for a whole lot of stuff you don’t really want. In contrast, when I was getting a tax refund back when I was a W-2, I didn’t really think about paying taxes.
—
I’m not arguing FOR a national sales tax; I’m no fan of taxes at all. I wish we could just eliminate taxes altogether, and have the government be funded entirely by voluntary donations. But if I liked living in fantasyland, where unicorn farts would power our cars and manna fell from heaven, I’d be an Obama supporter.
9% on income; 9% on consumption; 9% on corporate taxes. To replace the monstrosity that is the American tax system today. I’ll take that deal every single day of the week, and twice on Sunday.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
I'll see your argument and raise cain one better...
Justin Spagnolo (standardcandle) (Diary) Wednesday, September 28th at 9:07PM EST (link)I think that Cain gets something that no other POLITICIAN gets…
EVERYTHING about our U.S. TAX code is about how the POLITICIANS can raise REVENUES for GOVERNMENT.
Once Revenue is received, the Politicians figure out a way to DISTRIBUTE it… for one of two categories…
Things we need to spend to run the government. {With each Czar appointed, each regulatory dept created, each regulation created… you see why our debt has risen exponentially…}
Things we spend money on, because its an issue for someone, and it may get the politician supporting it re-elected if they get some distribution going in that direction.
Unions are the vehicle for Democrats, and RINO’s love pork barrel spending… We need to stop the spending…
The one thing about Cain’s 999 plan… and why it will be demonized… is because it would eliminate Every Manipulative Aspect that POLITICIANS have over their electors.
That being said… I agree with you… no matter what the plan is, its going to require VIGILANCE!!
I’m getting there more and more with you… I’m still waiting for the NH debate… in spite of Erick’s admonition to start sending those checks now… it may be worthwhile to send them both what little cash I can afford, just to contribute to the quarter deadline… but Cain as of this moment… may be our{collectively speaking} Anti-Romney of the moment— he’s certainly rallying… for the multitude of reasons you’ve laid out… and I don’t care to play the “back n’ forth”… I’m still waiting to see “The Mantle” if you will… to settle…
“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives. “ -James Madison
if we had vigilance we would have already cut spending and taxes
Common_Cents (Diary) Thursday, September 29th at 8:16AM EST (link)give us the ironclad clause to protect rates, give us the discipline BEFORE we ever consider an additional taxing vehicle.
I’m tired of the dc elites pulling a Whimpy on us, “for a trillion today, we’ll gladly give you 100milllion in cuts on tuesday.”
Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
5555's
RoguePolitics (Diary) Thursday, September 29th at 8:34PM EST (link)nt
“So much of left-wing thought is a kind of playing with fire by people who don’t even know that fire is hot.” George Orwell
“Ancient Rome declined because it had a Senate, now what’s going to happen to us with both a House and a Senate?” Will Rogers
When the American spirit was in its youth, the language of America was different: Liberty, sir, was the primary object. Patrick Henry
http://theprecinctproject.wordpress.com
Because the Republican Party is NOT going to fix the Republican Party.
http://americanamendment.com/
Because Washington is NOT going to fix Washington.
Two Things:
conservativecurmudgeon (Diary) Friday, September 30th at 8:20AM EST (link)1) I think Mr. Cain is an outstanding candidate. However, I think a Constitutional Amendment would be required for a National Sales Tax. It is a direct tax on material things, at least as I understand it. This is presently Unconstitutional (article 1, section 9).
2) The question in this Day and Age is not the sources of revenue (-for which we have more than plenty), it is how it is allocated and spent. Therefore, we do not need tax shifts, or tax cuts, we need GOVERNMENT CUTS.
…and I think Mr. Cain is 100% on-board for this.
Federal sales tax
BA Cyclone (Diary) Friday, September 30th at 1:32PM EST (link)Isn’t there a national sales tax on fuel already?
“If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions.” — James Madison
“Electing Republicans who don’t have the courage of their convictions may be easier in some circumstances, but it won’t save our country.” — Jim DeMint
BA Cyclone’s blog
BA Cyclone on Twitter
amen CC and rogue. No plan or system will protect a non-vigilant
Mike gamecock DeVine (Diary) Friday, September 30th at 3:46PM EST (link)people from themselves.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
agreed, except see my above argument on how we would discourage consumption TOO much
Mike gamecock DeVine (Diary) Friday, September 30th at 1:24PM EST (link)with too high a sales tax.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
One thing we must all keep in mind: ALL forms of taxes have mostly BAD
Mike gamecock DeVine (Diary) Friday, September 30th at 1:25PM EST (link)aspects. Its a matter of weighing many options. For instance, with property taxes, you never really own your land, car etc.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
and just to be a pest...smile...we all bash the EITC, but Milton Friedman
Mike gamecock DeVine (Diary) Friday, September 30th at 1:27PM EST (link)long ago proposed a negative income tax if tied to eliminating most of the welfare bureaucracy and Charles Murray more recently argued its good cultural effects.
Feel free to hate me! smile
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Problem with 999 for me
msbs05 (Diary) Saturday, October 1st at 6:30AM EST (link)is the high 9% for the sales tax. I live in TN that has a 9% sales tax already, adding this to it means I will now pay more than 18%, nearly $20 for every hundred dollars. That is steep for states that have sales taxes and not income taxes, like many in the South, most conservative. It gets explained away to me by others by saying I would get a reduction in FICA and income taxes, but I am a disabled vet getting pay from the VA, so I do not pay those things, so this is a straight 9% raise on my taxes. I dont mind “getting some skin in the game”, I even prefer to pay some in this way, but my check is military so it is small and only covers so much.
My situation made me think of senoirs in the same place, they get small checks and dont pay FICA and income taxes on it. I think the left is going to tear into this plan with ads to senoirs saying they will be paying 9% more on food and medicines. I do not know how Cain will be able to stop that attack. I think if Cain wins nomination we lose Florida, even though he won the straw poll. Cain has not gotten the scrutiny yet on his plan. I really like Cain, the man, made small donation when he announced, but I have real concerns with how this plan will work and how it will play into the election. Beating Obama is number one objective to me and goes beyond who I like (except Romney, please not Romney), so I feel we should really think through this plan before commiting.
That's not a bad point, msbs
TheSophist (Diary) Saturday, October 1st at 9:50AM EST (link)Perhaps there does need to be a tie-in with things like payments to Vets being raised to take the 9% into account. I’m not a fan of entitlements (who is?) but there are exceptions even to that rule: veterans would be one of them.
As for seniors… what is it that Obama is so fond of saying? Shared sacrifice or something of the sort?
Considering that Rubio won Florida while explicitly championing Medicare and SS reform, I think we should give more credit to the older Americans crowd: they have children and grandchildren. I don’t think they want to screw their own grandkids just so they can have an extra few bucks in their pockets.
And frankly, that’s how it needs to be positioned.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
we have to have checks and balances in place
Common_Cents (Diary) Wednesday, September 28th at 3:02PM EST (link)before we introduce a new beach head for dc elites to exploit. Imho people don’t like change and are afraid of too big a jump. A flat tax is logical, simple, and an easier jump.
Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
The Brilliance of the 9-9-9 plan
Darin_H (Diary) Wednesday, September 28th at 3:25PM EST (link)is that it’s single digits, the hardest move for any price increase is to go from the magic number 9 to 10. It’s why even with sales taxes, credit and debit card payments everything is priced with 99 on the end (and especially $9.99 and $19.99)
I’d like to see it paired with an amendment that all tax increases need 2/3rds of each house, but at least if implemented, it’d take 60 votes in the senate to raise it.
A visionary coward says that anger can be power, as long as there’s a victim on TV – Flat Top, Goo Goo Dolls
Darin, I think you nailed it
Mike gamecock DeVine (Diary) Friday, September 30th at 3:48PM EST (link)nt
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
I've read that 999 is intended as a transition to the FairTax
Finrod (Diary) Thursday, September 29th at 1:41AM EST (link)When I heard that, it made more sense to me. Many people wouldn’t be able to be convinced to jump straight in to the deep end of the pool with the FairTax, but if we can get them partway there with 999, then it’ll be easier to get the rest of the way.
Let’s get down to brass tacks here. How much for the ape?
Finrod, I had questions about that as well
lineholder (Diary) Thursday, September 29th at 1:45AM EST (link)Just checked it out earlier today and learned the same thing you’ve mentioned here. It’s sounds like something that a person with business experience would do…especially if they’ve learned from experience that people don’t respond well to too much change at one time (which is usually the case).
No Sales Tax...
silentcal2012 (Diary) Thursday, September 29th at 6:58AM EST (link)without repeal of income tax. They must go hand in hand.
Not at such low rates across the board, in
Mike gamecock DeVine (Diary) Friday, September 30th at 3:54PM EST (link)my humble opinion
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Yes
balloonjuice Friday, September 30th at 6:39PM EST (link)No NEW taxes. And that is precisely what Mr. Cain is proposing. I’m not suggesting it doesn’t make sense or that I don’t understand it. If he wants a fair tax that’s fine. As soon as we get rid of the income tax and guarantee it will not return.
Sorry, I’m not willing to trust the diligent vigilance of 300 Million other people. Trusting other Americans to think like Americans instead of like Europeans is what got us here.
Criticizing the plan on its merits.
NightTwister (Diary) Thursday, September 29th at 6:35AM EST (link)It creates a new way to tax. Whether that’s fair or not, it’s a valid criticism. I’m not interested in giving the Dems a new way to get money from me, so I’m not in support of this plan.
I know you don’t like that criticism, but it’s one way how I will evaluate a candidate’s plans, and I don’t believe I’m alone.
The best argument against democracy is a five-minute conversation with the average voter. – Winston Churchill
Like I said above, it's a fair criticism
TheSophist (Diary) Thursday, September 29th at 2:00PM EST (link)And like I said above, without vigilance by the electorate, I really see no limit to politicians raising taxes, creating new tax channels, and the like. Look at what some states (e.g., California) do in terms of user fees and such that aren’t “taxes”… except they are.
Same with Cap & Trade — the economic impact is an energy tax, but because of how it’s structured, it doesn’t look like a tax.
So while it’s a fair criticism, I do think we need to keep in mind that there’s no magic bullet that would allow us to relax our watch over these so-called “public servants” of ours.
Hey, I’d love to see a spending cap amendment; I’d love to see a whole lot of things. But if the public stops paying attention, the politicians are gonna do what they’ve done for centuries: plunder the treasury.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
Exercising vigilance means no to 999
RoguePolitics (Diary) Thursday, September 29th at 9:19PM EST (link)1. as noted by others it will grow to the 101010 plan. The 252525 plan. Vigilance happens now when we say NO.
2. We don’t have a revenue problem we have a SPENDing problem. Until we solve that none of it matters. If Cain’s plan somehow managed a permanent cap on taxes we would just borrow more. Government has doubled spending in inflation adjusted dollars in 10 years. Quadrupled in 30 years. It is silly to talk about how we are going to change the tax structure until we shrink government back to at least 1980 levels. Levels which Reagan called out as massive-out-of-control spending. Really pre-FDR would be ideal.
3. Opening the door to an additional taxing mechanism is just pure stupid. Implying that somehow a magical vigilance will suddenly be exercised that has been absent for 100 years is sophistry of the highest order. You are offering alcoholics a supply of crack cocaine whilst promising to restrict their alcohol.
4. The right way to treat a drunken trust fund baby is to take away his trust fund. These SOB’s in DC are completely unable to control themselves or their sorry ways. Like a trust fund baby, they will never learn, can never be trusted and must be bludgeoned into submission. Repeal the 16th and give them NOTHING to replace it with. Pass a balanced budget amendment with teeth. Leave them sobbing to their campaign manager about the lack of lobbyist’s contributions because they have no public largesse to sell in exchange for their souls. Take us back to 1912 with a HARD limited federal government perpetually short on cash and unable to print what they can not tax and watch the problems in DC evaporate.
5. Finally, if you must do this, do it in the form of a constitutional amendment that actually caps permanently the 9% limits on these taxes and requires a balanced budget. That is the only way 999 won’t become 909090. The only way $14 Trillion doesn’t become $140 Trillion.
Expecting vigilance is a joke when half the voters expect a check. To them vigilance means making sure they get their cost of living adjustment.
Unfortunately, 999 is the kind of political show that Washington has been playing us with for decades.
Just so much more political theater. As Herman Cain would say, “How’s that been working for you?”
999 is a terrible idea.
I like Cain. I give him credit for putting an idea on the table instead of hiding behind wonks. If he is serious, he shows a complete lack of understanding of Washington and how thoroughly corrupt the cesspool has become.
“So much of left-wing thought is a kind of playing with fire by people who don’t even know that fire is hot.” George Orwell
“Ancient Rome declined because it had a Senate, now what’s going to happen to us with both a House and a Senate?” Will Rogers
When the American spirit was in its youth, the language of America was different: Liberty, sir, was the primary object. Patrick Henry
http://theprecinctproject.wordpress.com
Because the Republican Party is NOT going to fix the Republican Party.
http://americanamendment.com/
Because Washington is NOT going to fix Washington.
I might be more receptive
TheSophist (Diary) Friday, September 30th at 12:21PM EST (link)if you could find some instance of Cain suggesting we don’t need to cut spending, the size and scope of government.
It strikes me as a total red herring to say, “Because Cain has a 9-9-9 plan, it means he doesn’t want to cut spending”.
It’s pretty clear the man wants to cut spending. The man wants to cut the size, scope and influence of government in our lives. It isn’t as if he’s brand new on the scene with no previous comments, thoughts, etc. on the issue. The man is on record as supporting a spending cap amendment to the Constitution, for cryin’ out loud.
So can we take it as a given that he wants to cut and curb spending?
Now, with that in mind, what’s so bad about 999 again?
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
I give Cain credit for good intentions.
RoguePolitics (Diary) Friday, September 30th at 11:53PM EST (link)But if he, or anyone else, thinks this will in anyway be permanently simplified and pure they are not thinking it all the way through.
Does he want to cut spending? Sure. Everything else you credit him with. Fine.
How long will he be president?
Does 999 mean no more Obamas or Pelosis get elected?
Of course not. So it is a given that a 999 plan that is merely a legislative act will result in creep and given the last 100 years of history we can safely assume the “creep” will be massive.
It is totally different to say Cain supports a BBA vs he will accept a 999 style plan without having a BBA requirement directly linked. If not coupled in an absolute package there is no reason to believe a BBA will ever happen as a result of a Cain presidency even if he managed to get 999 done. A BBA might well be what he jettisons to achieve his 999 plan.
In addition to good intentions I also give Cain credit for brains. He is too smart to think 999 is more than a gimmick. He certainly must know that if enacted it would be abused by the very next set of leftists elected.
But even aside from whether he gets that or not, you are trying to shape government around one man.
You ask me, since Cain wants smaller government shouldn’t 999 be OK. No because we have to see what happens to 999 down the road. Look at the monstrosity of the income tax. Yet it was pushed as a limited tax that would only affect a few. Look at the AMT nightmare so many live through today. Another tax that would be responsibly targeted at only a few.
When you plant a bureaucratic tree you have to anticipate growth and predict the path of growth. How will it grow? Look at history and it is plain to see 999 will eventually become a nasty bureaucratic nightmare. It won’t eliminate the IRS. Any simplification of the income tax will be short-lived. While the new arm of IRS bureaucracy charged with enforcing and collecting the new tax will reach new depths of depraved government excess.
There is no serious argument to be made denying the certain corruption and bastardization of 999. Eight years or eighty it will happen.
“It is jealousy and not confidence which prescribes limited constitutions, to bind down those whom we are obliged to trust with power. Our Constitution has accordingly fixed the limits to which, and no further, our confidence may go… In questions of power, then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.” Jefferson
Cain’s intentions are not relevant. What would the likely, or certain, result be of the new tax long term? That is the only thing that matters.
“So much of left-wing thought is a kind of playing with fire by people who don’t even know that fire is hot.” George Orwell
“Ancient Rome declined because it had a Senate, now what’s going to happen to us with both a House and a Senate?” Will Rogers
When the American spirit was in its youth, the language of America was different: Liberty, sir, was the primary object. Patrick Henry
http://theprecinctproject.wordpress.com
Because the Republican Party is NOT going to fix the Republican Party.
http://americanamendment.com/
Because Washington is NOT going to fix Washington.
All really good points
TheSophist (Diary) Saturday, October 1st at 9:52AM EST (link)and all I can hope is that Cain’s people are reading your response here and that he’d make the direct connection that you and I both want.
Over eighty, ninety years, anything can be corrupted. I don’t see that as a knock against 999.
But the explicit linkage between shrinking size/scope of government, and preventing immediate corruption (by way of Amendments) is something I’d like to see him make more clear.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
any plan will grow as such, but the low rates overcome the danger of a new way to tax for GC
Mike gamecock DeVine (Diary) Friday, September 30th at 4:00PM EST (link)Lately, I think my personal conservative journey has, dare I say, “matured” to realize more strongly the limits of human nature and “plans”. We will always have to clean up any tax plan every so often or be crushed under its weight as human pols use it to buy votes, and any glance at any state sales tax code with all its exceptions and favors would disabuse the true believers in same as a panacea.
Cain’s plan does open up a new way to tax, but today we have an oppressive tax code sans that new way. The dramatic reduction in rates and exceptions trump that other danger for me. There is no less non-dangerous course.
But more later and still thinking, esp when Rogue weighs in …
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Wish there were a "like" button.
balloonjuice Friday, September 30th at 6:43PM EST (link)Because I really like not only what you wrote but how you said it.
Cain's 15 15 15 Plan
silentcal2012 (Diary) Thursday, September 29th at 6:55AM EST (link)Track the history of any tax. Its rates always fluctuate and usually bend upwards. There is no way to insure those rates will stay 9%.. What is insured is a brand new tax and a brand new bureaucracy that will be around forever.
Plus the more revenue streams for the gov the easier the spread the increases around and make them seem insignificant.
A Democratic Administration could rationalize a 1% increases to income, sales, corporate, gas, capital gains, and different points more effectively than raising any one tax 5%.
999 is not a conservative plan. Its naive.
A Democratic Administration?
TheSophist (Diary) Thursday, September 29th at 2:03PM EST (link)Are you so ready to throw in the towel on actually educating the American public, your friends and neighbors, and creating a political environment in which politicians of BOTH parties are forced to behave in a more fiscally responsible manner?
I know the pendulum swings back and forth, but this strikes me as bad calculations. It’s like the Obama folks who thought, “Hey, once we get Obamacare passed, we’ve won!” not counting on the HELL NO from the public, resulting in 2010 and what is to come in 2012.
Obamacare will be repealed. So much for that “win” then, eh?
I’m not suggesting that 999 is the cure-all. I’m suggesting it’s a helluva lot better than what we’ve got today. And I’m ready to take on some new challenges with a new system. Let’s try to make some NEW mistakes, rather than the same old ones over and over again.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
of course, the very enactment of 9-9-9 would disprove the "be around forever"
Mike gamecock DeVine (Diary) Friday, September 30th at 4:04PM EST (link)argument. Yes, nothing can prevent the eventual corruption of any tax system., including the FAIR tax. The one we live under now is so corrupted. This would be a way of purging and starting all over.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Why 999 is different
gator_hoo (Diary) Thursday, September 29th at 8:58AM EST (link)As famously recounted, Winston Churchill asked a dinner companion if she would sleep with him for 10,000 sterling. She said, “Of course.”. Then he asked if she would sleep with him for 10 sterling, to which she replied, “What kind of woman do you think I am?” Churchill answered, we established that, now we are just negotiating price.”
Unstinting a national income tax is a huge step, it is one that is very easy to block politically, and very hard to sell to the people al large without getting rid of the income tax. Once it is established, and no less, established by a Republican administration, then Congress is just “negotiating price.”
I haven’t been able to find the figures, but if I remember correctly, the national income tax was implemented at a tax of 7% on top earners. In 5 years, that 7% rate increased more than tenfold to 77%.
Cain’s 999 plan establishes “what kind of nation we are.” In doing so, it takes us down the wrong path to higher taxation.
Problems
drivlikejehu Thursday, September 29th at 9:55PM EST (link)Cain’s plan has problems in its own right, but it also highlights greater problems with his platform generally.
1) The 9/9/9 plan really makes no sense as the cornerstone of a Presidential campaign. Cutting, flattening, and simplifying the existing code would deliver similar benefits, but would be far easier to achieve. Economically speaking, it is really the overall burden which is most important; the form of taxation does impact how people behave but right now consumers are already saving what they can (sales taxes promote saving over spending).
2) It could never pass, but not for the usual reasons. Because sales taxes promotes saving over spending, there would be widespread opposition from many business interests. Combined with expected left-wing opposition and also those conservatives against instituting a national sales tax, there is no way it could make it through Congress. Even if it could, it would be far wiser to reform the existing code and save political capital for other issues.
3) Speaking of which, Cain has had little to say on how he would cut spending and reform entitlements. That is where the real resistance is in DC- changing the tax code is a cakewalk by comparison. Cain is using his 9/9/9 as some kind of cure-all, whereas in reality it has nothing to do with our most pressing challenges.
4) This is related to (1), but the 9/9/9 plan would not be so simple in practice. For instance, things like 401(k) retirement plans only exist because of the income-dominant approach to federal taxation. Changing the balance would require far-reaching efforts over a long period of time, with plenty of opportunity for economic distortions. It is particularly nonsensical as an intermediate approach to the Fair Tax.
Ultimately Cain’s 9/9/9 is more show than substance, since it only addresses one aspect of federal policy- and one that, while bloated and unfair, is not really at the crux of Washington’s dysfunction.
The beauty of 999
GregInFla (Diary) Thursday, September 29th at 11:12PM EST (link)999 reduces the costs of compliance. Simplification means less money spent to accountants and lawyers and all sorts of support people just to comply with the taxes.
On a related matter, this is why Obama’s tax breaks for businesses are ridiculous: businesses have to pay money to investigate, file forms, get advice, etc. just to save the money by using the tax break. And what if they spend that money and find out it’s like that rebate offer you had last month, that was turned down because of some timing issue or a document that was missing? The business then loses. And the government needs to spend more money to administer these hare-brained schemes.
– A true evolutionist would let endangered species die off. Think about it.
– The sign outside the courthouse said no signs allowed. So I took it down.
– Atlas Shrugged is now on the non-fiction aisle at Amazon.
999 is a marketing gimmick
Ed54 (Diary) Thursday, September 29th at 11:51PM EST (link)The number 9 isn’t based on any sort of financial analysis. It was picked because 999 is more catchy and memorable than 7-11-6.4.
National taxation policy is too serious to be addressed with a slogan from the lid of a pizza box.
“If all men were just, there would be no need of valor.”
- Agesilaus
To be sure, I'd like to see some detailed analysis
TheSophist (Diary) Saturday, October 1st at 9:55AM EST (link)on the 999 plan released by Cain and his people.
I’ll give him the benefit of the doubt for now that the 999 plan is in fact revenue neutral. But we’ll see when the detailed analysis and projections come out.
“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” – Ronald Reagan
Revenue isn't necessarily the point, though
dajeeps (Diary) Friday, September 30th at 1:58AM EST (link)And that is why 9-9-9 puzzles me. In addition to getting us to swallow a new tax, when we otherwise wouldn’t, putting out a revenue neutral plan isn’t something I’ve been hearing that we want. What I hear is:
Government SPENDS too much, TAXES too much, REGULATES too much. The 9-9-9 plan addresses NONE of these major concerns and has been placed as a priority.
I don’t want the deckchairs on the Titanic rearranged by switching around what kinds of taxes we pay. The big government mess needs to be cleaned up with NO NEW TAXES, and then we can talk about how to fund what’s left. If we need an interim plan, the flat tax will work fine.
…”I would quarrel with both parties and with every individual of each, before I would subjugate my understanding, or prostitute my tongue or pen to either.”
–John Adams
I think "revenue neutral" is required.
BA Cyclone (Diary) Friday, September 30th at 6:49AM EST (link)First, remember that YES, the problem is SPENDING not taxes.
But also remember that today, we are borrowing 40 cents of every dollar government spends.
Thus, to turn the question around, the question isn’t taxes but rather HOW taxes are collected and who pays them. Today about half of the eligible taxpayers get off scott-free, a big portion of the next decile or even quintile pay a very low rate, and the rest of the taxpayers (mostly those over $160k AGI) pay most of the bill.
So by nature we must cut government ~40% to end deficits.
But we also must assure two things:
The structure of taxes is simple enough to easily engender wealth creation, and
the cost of government should be readily visible to all.
That’s what I like about the 9-9-9 plan: it’s simple and it automatically puts everyone’s skin in the game.
If a flat income tax was Q.E.D. successful, Steve Forbes would have been President.
“If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions.” — James Madison
“Electing Republicans who don’t have the courage of their convictions may be easier in some circumstances, but it won’t save our country.” — Jim DeMint
BA Cyclone’s blog
BA Cyclone on Twitter
There are many "points" and how we raise revenue does affect economic growth
Mike gamecock DeVine (Diary) Friday, September 30th at 4:15PM EST (link)9-9-9 would unleash entreprenuerism., ie job creation and innovation.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Isn't there already a sales tax
beach91 Friday, September 30th at 9:08AM EST (link)whenever you go and buy a gallon of gasoline to the tune of 18.4 cpg? Seems to me the national sales tax is already there albeit in a limited version. I think it has been relatively stable too since 2005. The truth is what Sophist said that we cannot have a great idea implemented and then stick our heads in the sand.
Here are the fundamental 9-9-9 problems
Neil Stevens (Diary) Saturday, October 1st at 12:04AM EST (link)It creates a new tax.
It creates a new tax that insidiously inserts the federal government into every economic transaction in America, regardless of interstate commerce.
Its name is misleading in that it leave the payroll tax alone (apart from allowing people to divert funds, therefore defunding Social Security without cutting benefits, which we can’t afford).
RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules
Unlikely Voter: Poll Analysis, Election Projection.
“I rejoice that America has resisted.” – William Pitt, the Elder
Cool story, son.
Jim Tomasik (Diary) Saturday, October 1st at 7:59AM EST (link)Your a bright young man, is that the best you can come up with?
Well Said
mattdeluca (Diary) Saturday, October 1st at 12:23AM EST (link)I am SHOCKED that we should discuss a plan on its merits
That said the only thing I’m not in favor of is a national sales tax from 0% to 9%
But then maybe the lowering of other tax rates works. I’d have to see the math.
Well said