Tax Reform—at last!

Until Herman Cain brought forth his 9-9-9 plan, a 9% personal income tax, 9% corporate income tax, 9% national sales tax, no one in the GOP herd had the guts to bring forth this topic for national debate.  All that has apparently ended and it’s a good thing, too.

The State Media immediately attacked it.  The Atlantic called it three VAT taxes in one.  Clearly they’d never bothered to actually read the proposal but relied on what other libs said about it. 

ABC news said, “However, a much longer list of economists say Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.” In short, they’re against those who have never paid any income taxes, paying some and they’re also against the abolition of punishing taxes against those who are successful.

In that same vein, the Chicago Tribune went to more libs for their opinion. You shouldn’t be surprised, their opinion was negative.

But Bruce Bartlett, a former Treasury official under President George H.W. Bush who studied Cain’s plan and wrote an analysis Tuesday for the New York Times, said Cain “offers no evidence for this assertion; it is simply put forward as self-evident.”

Bartlett called the plan “a distributional monstrosity.”

“The poor would pay more while the rich would have their taxes cut, with no guarantee that economic growth will increase and a good reason to believe that the budget deficit will increase,” Bartlett wrote.

That’s because two of Cain’s three 9s – the income tax and the national sales tax — would disproportionately impact the 47% of tax filers who don’t pay any federal income tax under the current system – many of whom are elderly or poor.

Yes, those people who have never had skin in the tax game, suddenly would!  What’s fair for some, is fair for all.  If you had an income, you should pay tax on it.  That’s the spirit of the 16th Amendment that authorized the income tax in 1913.

The issue, as it seems to me, is that the proposal would have taxes applied equally to all. The existing code benefits 47% of the population that pays no income tax at all. The dems and libs think that, is fair.

I don’t.

But to continue,  the discussion about tax reform is continuing.  Rick Perry is about to introduce his version of tax reform—a flat tax.  The Christian Science Monitor has this short piece.

Rick Perry flat tax plan: Don’t expect a 9-9-9 retread

Rick Perry says his flat tax plan is a major part of his broad prescription to revive the economy and create jobs – a move he hopes will also revive his campaign.

By Brad KnickerbockerStaff writer / October 19, 2011
Republican presidential candidate, Texas Gov. Rick Perry, runs prior to delivering a keynote address during the Western Republican Leadership Conference, Wednesday, Oct. 19, in Las Vegas. Perry said he’ll be announcing details of a flat tax plan next week.
Isaac Brekken/AP

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“It starts with … scrapping the three million words of the current tax code, starting over with something simple: a flat tax,” the Texas governor told GOP activists at the Western Republican Leadership Conference in Las Vegas Wednesday.
Like businessman Herman Cain, whose 9-9-9 plan came under fire at Tuesday’s debate, Mr. Perry wants to do away with the current tax system. Although Perry won’t reveal the details until a speech scheduled for next week in South Carolina, the similarities likely end there.
Personally, I have some concerns about Cain’s 9-9-9 plan. It includes a new tax, a tax we’ve never had before, a national sales tax.  There is great danger there and the potential of the dem/lib party raising that 9% sales tax in some future year to an intolerable level.
Don’t get me wrong, I like what I’ve seen and heard so far about Herman Cain. I’m just not sold on the totality of his plan.

On the other hand, I’ve become disillusioned with Rick Perry.  He had a good start, good credentials and a reasonably good record in Texas.  He also had some serious weaknesses in his stance on immigration and education. I’m open on his flat-tax plan. I’m a bit impatient to discover more.

Regardless, the topic of tax reform, is out of the closet and out in public view.  It’s about time.