The Godfather of supply-side economics, Arthur Laffer, has given Herman Cain's signature "9-9-9" economic plan a critical boost, even as it has come under heavy fire from his GOP presidential competitorsThe famed economist told HUMAN EVENTS that the proposal was pro-growth and would create the proper conditions for America's economy to expand and thrive again.
"Herman Cain’s 9-9-9 plan would be a vast improvement over the current tax system and a boon to the U.S. economy," Laffer told HUMAN EVENTS in a statement. "The goal of supply-side tax reform is always a broadening of the tax base and lowering of marginal tax rates."
Added Laffer: "Mr. Cain’s plan is simple, transparent, neutral with respect to capital and labor, and savings and consumption, and also greatly decreases the hidden costs of tax compliance. There is no doubt that economic growth would surge upon implementation of 9-9-9."
Laffer also said that "such a system provides the least avenues to avoid paying taxes, yet also maintains the strongest incentives for work effort, production, and investment."
Cain's the ONLY real choice at this point, barring some RP MIRACLE - but I'm not at all crazy about his "9-9-9" plan, and it honestly worries me that he doesn't see the flaw...
ReplyDeleteOne of the nines is a nine-percent corporate income tax.
CORPORATIONS DO NOT PAY TAXES! THEY NEVER HAVE AND NEVER WILL!!!
All they do is raise their prices, then We The People are the ones who pay !!
Further, since it's a flat tax and all businesses must pay it, the effect on prices will be exponential!
Think of toilet paper. Every business in the supply- chain (and their suppliers, and THEIR suppliers, and so on and on and...) will have to pay it.
Tree farmers (And everyone who supplies them)
Loggers (And everyone who supplies them)
Truckers (And everyone who supplies them)
Paper mill (And everyone who supplies them)
Chemical suppliers (And everyone who supplies them)
Truckers again (And everyone who supplies them)
Retailer (And everyone who supplies them)
And so on, how many layers deep would too like to go?
Chainsaw makers, skidder-builders,...
Truck makers, tire makers, mechanics, fuel suppliers...
And on and on - each forced to raise their prices to cover a new tax...
What do you think this will do to the price of that roll of TP?!!
Excellent points.
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