Arthur Laffer of table napkin connect the dots Laffer curve tax reduction fame has endorse the Cain 9-9-9 tax plan http://online.wsj.com/article/SB10001424052970204346104576637310315367804.html?mod=WSJ_Opinion_LEADTop because it is simple and will therefore will save what he claims is 30 cents on every dollar spent administering the current taxes in the tax code.
Now first a confession – I really like the “used” exemption from the sales tax that Cain says the poor would surely use – as in used food. This is the first explicit, as opposed to implicit, GOP plan that says feed the rich more and let the poor eat shit.
I wonder if a simple tax system is really the goal – would Laffer endorse a simple annual asset tax on worldwide assets with credits for assets taxes paid in other countries – say 5% – with a $5 million deductible for all persons including “corporate persons”, plus a 55% flat income tax on all income, wages plus investment, with a $5 million dollar deductible for all persons, including “corporate persons”, plus a 55% Estate Tax with a $5 million deductible, plus an 5% earnings tax on all wages and investment income, separately on each person and on their employer, replacing the payroll tax as the support for Social Security and Medicare, with a first $5,000 exemption, plus a 5% Value Added Tax – a VAT – on all goods, with a rebate on goods exported, so we can compete?
Now the above is very simple – back of an envelope seems to produce enough money for a massive jobs program plus what we are currently spending plus National Health with no deficit – indeed a surplus.
So will Laffer endorse the 5% -5, 55%-5, 55%-5, 5%-5, 5% Plan? It’s simple – saves that 30% cost of doing your taxes he is worried about, and 5% -5, 55%-5, 55%-5, 5%-5, 5% rolls off the tongue doesn’t it?