Herman Cain is an African American who made a small fortune delivering bastardized Italian food to WASPy college stoners – America in a nutshell. His presence in Washington would double the swamp’s allocation of common sense, yet his latest proposal looks pretty foolish. Mr. Cain, please see the light and step back from your 9x9x9 tax proposal.
Mr. Cain, a long time Fair Tax proponent, has recently endorsed a similar idea: abolish the entire tax code and replace it with a 9% tax on individual income, corporate profits, and payrolls. Considering the middle class unknowingly pays a 14% payroll tax, the proposal looks great on paper. Marginal taxes would decreases, and the various deductions by which Washington manipulates the tax code would be wiped away. Doubtlessly, economic growth would explode as the market would be set free to allocate all forms of capital where it would create the most value. The one problem is that Mr. Cain clearly does not understand how Washington works.
When the States ratified the 16th Amendment in 1913, the initial top income tax bracket was 7%, and only for those making the modern equivalent of $22million. For those earning up to $132,000, the tax was 3%. By 1944, under a militantly anti-capitalist FDR administration, the top bracket rose to 94%. Ever since its introduction, the income tax has been used as a weapon in class warfare. Congress knows that populist strumming of the ‘fair share’ hymn wins elections, and tax deductions are the main currency of graft. As long as there has been an income tax, it has been abused.
Therein lies Mr. Cain’s naiveté, he thinks that the flat 9% income tax elements of his plan will remain. From the beginning of the US’s income tax, it took only three years to double the top bracket. If Cain’s 9x9x9 plan were passed, income tax brackets and corrupting deductions would quickly return to their prior corrupt state, but the sales tax would remain.
The US already has a sales tax, only it is implemented at the state and local level. Taxes range from zero to over 13%, nearly the VAT rates of socialist Europe. Add a Federal tax, and the typical sales tax would easily eclipse European levels. The US left has long sought to emulate Europe in its failures, and giving the Federal Government the final piece to the socialist tax puzzle would lead to disaster.
The Fair Tax usually calls for the Constitutional abolition of the income tax, but not so for the 9x9x9 proposal. Like a wild predator, once Washington gets a taste for the new sales tax, it will stalk and prey upon the US consumer until the US is just another anemic European socialist failure. For the sake of everything in which you profess to believe, Mr. Cain, please stop endorsing a Federal sales tax.
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