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What’s More Important–Jumpstarting the Economy, or Raising Taxes on the Rich?

Republican presidential candidate Herman Cain is advocating a plan to overhaul the current tax structure in order to jumpstart the economy.  You can read the details at his website http://www.hermancain.com/999plan.  In a nutshell, his 9-9-9 plan would lower corporate taxes to 9%, personal income taxes to 9%, and introduce a 9% consumption tax.  Loopholes and deductions (with the exception of charity) would go away, as would the inheritance tax and capital gains taxes.  Businesses would save billions in tax compliance costs, and individuals would have more to spend, since it also eliminates payroll taxes.

I see two problems that stand in the way of such a change being passed.

First, politicians would probably balk.  For the plan to be effective, the constitution would need to be amended to prevent politicians from enacting other taxes on top of the 9-9-9 plan.  But we know how politicians are.  They like to provide favors for the donors.  So not being able to provide tax breaks for their favorite people or companies wouldn’t fly.

Second, Democrats wouldn’t go for it either.  Simply put, regardless of whether or not the plan would help the economy, their complaint would be that the rich weren’t paying enough.  Need proof?  In an exchange between Cain and the talking heads from MSNBCRachel Maddow, Al Sharpton, Eugene Robinson, Ed Schultz, and that O’Donnell guy, each asked Cain a question.  Of course, the good Rev. Sharpton asked a question racially related, asking if Cain’s talk of states having more control over certain things doesn’t equate to the classic “states rights” debate from the civil war and civil rights eras (thank goodness Cain shot him down quickly).  O’Donnell and Robinson went after him over Social Security–“personalization” vs “privatization.”  But around the 4:30 mark, Shultz plays the class card.  His worry?  That the 9-9-9 plan not only hits the lower class hardest, but that the rich wouldn’t pay their “fair share.”

Well, we know what the real priority is!  (Video can be seen here).

By the way, because reminding folks about it never gets old, a strong argument can be made that high income earners, by virtue of their piece of the tax pie, already pay their fair share, if not more. Here is a piece that breaks down the income tax burden pie in 20% increments.

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2 responses to “What’s More Important–Jumpstarting the Economy, or Raising Taxes on the Rich?

  1. cartiacartel October 5, 2011 at 1:54 pm

    great article. Of couorse for the dems it is about raising taxes on the rich

  2. Pingback: 999 tax plan | bellbookcandledotcom

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