Wednesday, October 26, 2011

Reagan adviser gets 9-9-9 right ~ By Herman Cain

In his column this week, Herman Cain comes out, in his OWN words, and tells it like it is: "Excessive spending, not insufficiently high tax rates, was the problem then and it's still the problem today."

I think that the whole truth is, it isn't just the 9-9-9 plan that is keeping Herman rising in the polls. And he realizes that when you rise in the polls like he has, everyone - including Republicans, Democrats, and Obama - are going to try to beat him like a pinata. As far as his detractors know, Cain's support comes only from his 9-9-9 plan, and that it is the object of all of their negative focus That is to Herman's advantage. The adversaries are missing the real BIG picture of Herman, such as his belief in free enterprise, lowering government spending and power, and empowering individuals to succeed when they put their heart and mind into it.

But in the mean time, the 9-9-9 plan is not all that bad. Actually, I see good reasons, as does Art Laffer, to support it. It would truly be a stimulant to the economy. But that's just me... I think if you have some knowledge of economics, you'll find the same thing that I have when studying this plan. And I'm not as smart as Mr. Laffer, but I get it.

"It's nice to have someone with the credentials of Arthur Laffer affirm that it can, and will, work."

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Reagan adviser gets 9-9-9 right

By Herman Cain

October 23, 2011 ~ 8:30 pm Eastern

© 2011

One of my favorite criticisms of my 9-9-9 tax-reform plan is the one where people indicate they would support the plan if only we could find a way to guarantee Congress could never change the rates in the future.

They must really like the plan to ask for that. Has any other presidential candidate ever been asked to guarantee that the tax rates he proposed could never be changed?

I realize, of course, that much of this owes to the introduction of a new federal tax – the consumption tax – as part of the equation. It makes people nervous because they figure politicians can't raise a tax that doesn't exist. So once the consumption tax is in place, they say, 9 percent will only be the starting point for politicians to raise it and the other taxes, and 9-9-9 quickly becomes 10-10-10, 11-11-11 and who knows what else?

That's why it's nice to have respected economist Arthur Laffer bring a little reality to the discussion in a piece he wrote last week for the Wall Street Journal. Mr. Laffer, you might remember, was the originator of the Laffer Curve, a notion in economics that demonstrates you get diminishing returns from higher marginal tax rates because they discourage investment and economic growth. Specifically, his Laffer Curve showed that you can collect the same amount of revenue from a lower marginal rate as you can from a higher marginal rate because of the impact the rates have on the economy.


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