Presidential candidate Herman Cain is touting his 9-9-9 tax plan, which would replace the three-million-word tax code with a flat 9% federal income tax, 9% corporate tax, and 9% national sales tax.
Fellow candidate Rick Perry recently proposed a flat tax of 20% on earned income and 20% on corporate income, and a simplification of the tax code including elimination of loopholes and eradication of the death tax. Newt Gingrich has similarly suggested a 15% flat tax.
These plans recall the flat tax Steve Forbes campaigned for president on in 1996 and 2000. All of these plans, in addition to numerous other benefits, would massively reduce the U.S.’s collective tax compliance cost to the tune of hundreds of billions of dollars. (Though liberals don’t realize it, it would be a fantastic thing for our economy if every employee of the Internal Revenue Service, H&R Block, and every tax lawyer, accountant, and tax preparation service employee lost his job and had to go out and find useful productive work.)
In response to these Republican candidates’ thoughtful proposals, liberals are screaming that conservatives’ plan for getting us out of our present fiscal crisis is to “tax the poor.”
If only we could get out of our current budget predicament by taxing the poor. In fact, we can’t even get out of it by taxing the rich.
As has been amply demonstrated, massively increasing taxes on high earners wouldn’t come close to relieving our budget woes, which can be alleviated only via radical entitlement reform. Eating the rich now will not ensure an enriching long-term diet for the nation later. read more »