During a recent broadcast, Jason Lewis (Jason Lewis Show), was discussing Herman Cain's 999 economic plan and began a stream-of-consciousness defense of the program that I thought was brillant.
What is The 999 Plan?
The 999 Plan essentially replaces the current tax code with a 9% Business Flat Tax, a 9% Individual Flat Tax and a 9% National Sales Tax. Cain describes the plan as "fair, simple, transparent and efficient" because it taxes everything once and nothing twice while broadening the tax base (the number of tax payers) at the lowest possible rates.
The 999 Plan essentially replaces the current tax code with a 9% Business Flat Tax, a 9% Individual Flat Tax and a 9% National Sales Tax. Cain describes the plan as "fair, simple, transparent and efficient" because it taxes everything once and nothing twice while broadening the tax base (the number of tax payers) at the lowest possible rates.
Cain's Republican competitors for the nomination have launched the following attack on the 999 Plan: "I am concerned that once the 999 Plan gets in the hands of Congress, it will become the 21-21-21 Plan."
The Defense
The Defense
If you broaden the base of tax payers, meaning that you increase the number of tax payers, you strengthen the defense of future tax increases. Currently almost 50% of tax filers pay no federal income tax. When Democrats demagogue the wealthy and perpetuate class warfare, these non-tax payers have no reason to question the legitimacy of the argument. In a sense, they could not care less if taxes are raised “on the rich” or anyone else for that matter because they are not paying a thing. No skin in the game.
The best analogy I can come up with is local property taxes. Dig up any news article about a proposed property tax increase anywhere in the country and what is the one constant? Broad-based outrage even from people who rent their homes because higher taxes means higher rent rates. Why the broad outrage? Because of a broad tax payer base. People inherently do not like paying taxes for two reasons:
I think Cain's plan is phenomenal. It is just what this country needs to get our economic house in order.
- They would rather keep the money themselves and decide how to spend it.
- They know that, when it comes to spending other people's money, government is inefficient at best and criminal at worst.
I think Cain's plan is phenomenal. It is just what this country needs to get our economic house in order.
