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Originally Posted by Villages Kahuna
Richie, one of the rerasons that 9-9-9 will never see the light of day is the fact that on average a 9% tax rate will be a dramatic increase in taxation on American companies. Their costs would increase, as would their selling prices as the result of higher tax payments. A high percentage of American companies don't pay any tax at all. What do you think they're going to do when faced with the prospect of paying 9%? They will unlease their lobbyists on Washington like a large pack of mad dogs.
Again, look at the facts and do the arithmetic. Don't just listen to the nice-sounding campaign speeches. Other than Herman Cain himself, have you seen even one economist or someone or some organization knowledgeable in government finance who supports this plan? Even one? Even Grover Norquist was on TV this morning. No one is more conservative on fiscal matters than Norquist. He's on the far right of the Tea Party for crying out loud. He said that 9-9-9 was not only a bad idea, but could never be enacted into law.
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Businesses pay less than 9%??? Really?? Is that why so many are uprooting for foreign shores?
Of course the establishment doesn't like this plan. They make a fortune from the current tax structure; from tax lawyers, to tax shelters (Berkshire Hathaway for an example, company of the always lovable Warren Buffett, the President's main man), to all the people and resources in the $430 Billion Dollar tabulation and collecting sectors of the government.
I never said it was anywhere near easy to get something like this passed. I've previously stated on an earlier thread that the legislators would be giving up a humongous portion of their own personal power in simplifying the tax code to this extreme.
It takes a real American and not a self-centered politician to even promote such a thing, and to promise to try to get the process in motion towards implementing such a thing.
Grover Norquist is but one of many who resists change, and doesn't share Herman Cain's economic assumptions on the real world outcome of his 9-9-9 plan if it ever came to fruition.