...and in the meantime, more economists, policy wonks, and other brainy people come forward and say they like what they see...
Here's Reagan economist Art Laffer, who is famous for the "Laffer Curve", who calls 999 a "wonderful plan" and addresses the criticisms both from the left that it's a regressive tax and from the right that it's a risk to institute a new tax:
Fox News | Special Report with Bret Baier | Reagan Economist Breaks Down 999 Plan
Human Events also interviewed Laffer on Wednesday about 999:
Human Events | Godfather of Supply-Side Economics Supports Cain's '9-9-9' Plan
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 competitors
The 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."Congressman and Budget Committee Chairman Paul Ryan told The Daily Caller that he "loves" the 999 Plan:
The Daily Caller | Paul Ryan 'loves' the idea of Herman Cain's tax plan
House Budget Committee chairman Paul Ryan said in an interview with The Daily Caller that he “loves” the idea of having “specific and credible” plans, like presidential candidate Herman Cain’s signature “9-9-9″ proposal, in the national debate about tax policy.
Ryan told The Daily Caller in an exclusive interview that Cain’s plan is a good starting point for debate, and shows the GOP presidential campaign season has entered into a more advanced stage where ideas — not just personalities — have come to the forefront.
“We need more bold ideas like this because it is specific and credible,” Ryan said. “I’m more of a flat-tax kind of a guy.”
The budget chairman went on to say that ideas like Cain’s plan could help shape the debate over tax reform moving into 2013...See also:
Wall Street Journal | John McKinnon | Cain Plan's Reagan-Era Roots
My post from earlier this week: Here's some brainy economists discussing Cain's "999 Plan"
Its a great plan, only one problem, another revenue stream. Simply put we need a constitutional amendment that the federal government will not consume more than 18% of the Gross Domestic Product or Y = Consumption + Investment + Government spending + (Exports - Imports.
ReplyDeleteThe 9/9/9 could become 15/15/15. A balanced budget amendment will not prevent the growth of the federal government with a 9/9/9 plan and Cain knows it. With a national sales tax federal tax collections, previously limited to a high of 20.6%, could easily reach 30%, 40%, and even 60% as seen in Europe.
This Trojan hoarse is clever, and it would work, if we have a constitutional amendment keeping it at 9/9/9.
Additionally there are other problems more pressing to create economic growth.
Regulation reduction.
Federal spending.
Federal Reserve policy.
Entitlement program bankruptcy.
Dept ratios for America of 3.67/1.
Federal Reserve leveraged ratio of 56/1.
Population time bomb demographics.
In the grand scheme of things a new tax plan is, at best, 5th or 6th on the list of importance.
I do not mean to brag but my economic skills when I am inebriated is 100 times better than the average persons when they are sober.
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