There is an increasing public conversation about Herman Cain's proposal for a radical restructuring of the US Tax Code, known as 9-9-9: 9% personal rate and corporate rate, 9% capital gains rate, 9% national sales tax.
The reaction to Cain ranges from the dismissive to the hysterical, but Denninger discusses the math.
To be sure, this gent gets wound up about everything, but get past that, and he makes sense, because he does know how to do math.
OS thinks this approach holds much promise, if coupled with dramatic reductions in government expenditure.
And, on a visceral level: OS loves his country, and knows that it takes money to run it. That's why we should levy taxes--to raise money to run the country. The present tax code is so completely Byzantine that when OS signs on the line above the phrase 'Under penalty of perjury, etc.', he honestly does not know with complete certainty whether the return is truly correct or no. All he can do is make his best effort and hope. It eats up days of productive time each year, and creates huges worries.
President Cain could sign 9-9-9 into law, and OS would cheer. Every time OS has money arrive, he can multiply the income by .9, and send that much in to Uncle Sam.
A one page tax-return is all that would be required.
If 9-9-9 isn't enough, make it 10-10-10, or 12-12-12. Just take our money, spend it wisely, and leave us alone otherwise. We'll all prosper thereby, as OS was relating to his young friend the RestaurantOwner, over brunch this morning...
RestaurantOwner employs twelve people, and has other business interests as well. The Federal gubbmint is beating him around the ears financially, while proclaiming 'it's all about job creation, yadda-yadda-yadda.' RestaurantOwner is attracted to Cain as well, because it will allow him to work and expand his business, and have time for his wife and family.
Increasingly, OS thinks Cain laps the field of the other candidates. His ideas are long overdue. We're headed over the cliff unless we change direction.
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