Through September and most of October, the magic phrase for GOP presidential candidate Herman Cain was “9-9-9.”
His campaign is attempting to return to that simple message with this five-minute video explaining the details of a plan that would reduce personal and corporate income tax rates to 9 percent, but would also levy a new 9 percent national sales tax:
Obviously, it’s that last “9” that bothers many conservatives. Watch how Cain handles the topic. Here’s a taste of the script:
“What if all these hidden business taxes were based on a flat 9 percent, instead of 30 or 40 percent? Pretty soon, the marginal costs of production would drop, and that loaf of bread gets a lot cheaper to make. Thus, a lower price at the store. When the new 9 percent national sales tax gets factored in, our out-of-pocket costs at the store stay about the same. Maybe a little less than they were before. But now we know exactly when we’re being taxed, and when we’re not….
“Anyone nervous about introducing a national sales tax should realize we’re essentially paying one right now. It just isn’t visible. Once these taxes are out in the open, it incentivizes savings, and doesn’t allow tourists, imports or even underground activity to sneak by.”
I’m focusing on the section that I’ve marked in bold. Is the virtue of transparency worth a new tax that “maybe” will result in lower costs?
- By Jim Galloway, Political Insider