Bad Pizza In Godfather Herman's Kitchen | Keep Conservatives United

Ever had a pizza that tasted good going down? And then the heartburn hit?

Herman Cain?s 9/9/9 tax plan is one of those pizzas. The nine percent income tax and corporate tax sound good. But a nine percent sales tax on top is like bad anchovies. It ruins the pizza

If 9/9/9 becomes the campaign issue, it will reelect Barack Obama once people realize Cain wants us to pay both a sales tax and income tax. And if it does pass, then Cain will have implanted a malignant tumor in our economy that will only grow.

From the Wall Street Journal
?The real political defect of the Cain plan is that it imposes a new national sales tax while maintaining the income tax. Mr. Cain?s rates are seductively low, but the current income tax was introduced in 1913 with a top rate of 7% amid promises that it would never exceed 10%. By 1918 the top rate was 77%.

European nations began adopting national sales and value-added taxes on top of their income taxes in the 1960s, and that has coincided with the rise of the entitlement state and slower economic growth. Consumption tax rates usually started at less than 10%, but in much of euroland ?the rates have nearly doubled and now are close to 20%,? according to a study by the Cato Institute?s Dan Mitchell. Because a sales tax would raise huge sums with small increases in the rate, we would see regular campaigns like ?a penny to fight poverty,? or ?one-cent for universal health care? that would be politically tough to defeat.

The politics of a national sales tax is bad enough on its own. A 9% rate when combined with state and local levies would mean a tax on goods of 17% or more in many places. The cries for exemptions would be great. The experience of the so-called Fair Tax that would impose a 23% national tax rate isn?t favorable, as even Jim South Carolina?s DeMint learned when he nearly lost his first bid for the Senate after Democrats attacked the sales tax.

Mr. Cain?s campaign argues that the after-tax price of, say, potato chips or a new TV will be no higher even after the 9% tax because current prices have current taxes embedded in them. ?We rip out the bad taxes (lowering prices) then put the sales tax back in,? writes Rich Lowrie, a top economic adviser to the Cain campaign in an email. ?It is not an add on tax. It is a replacement tax.? That is right economically, but it?s a hard political sell to a family that sees the tax on its grocery bill.

Part of Mr. Cain?s appeal is his willingness to challenge political convention, and he certainly has with his tax proposal. Voters like that he isn?t a lifetime politician but a successful business owner who has met a payroll and created jobs. But his endorsement of a sales tax on top of the income tax is a political gamble that would eventually finance an even larger entitlement state. Better to reform the devil we know?the income tax?than to introduce another devil and end up with ever-rising rates of both.s

Herman Cain?s dough won?t rise

Source: http://www.keepconservativesunited.com/2011/10/08/bad-pizza-in-godfather-hermans-kitchen/?utm_source=rss&utm_medium=rss&utm_campaign=bad-pizza-in-godfather-hermans-kitchen

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