newjerseynewsroom.com

Friday
May 25th

Continued

10 common arguments to 999 (continued) Argument 5: 999 eliminates social security and Medicare. Answer: Sorry, but that is incorrect! 999 does cover SS and Medicare. Where do these people get this stuff!? Argument 6: empowerment zones will create more poor and larger "ghettos" Answer: empowerment zones Are modeled to create better living. They promote people (not just the poor) and business to move to those areas. The tax incentives make it much more appealing to operate business, build homes, reside in, and work in those areas, reviving the impoverished areas into flourishing communities! Herman Cain is the only "politician" ever to propose real legislature to actually help minorities in impoverished communities!  Argument 7: 999 will increase state sales tax. Answer: Definitely not true!  The federal tax and state tax are separate and one does not effect the other. State taxes stay the same and the federal tax is offset by removing embedded taxes! Argument 8: 999 gives the government power to raise taxes, who says 999 won't become 12,12,12 or 15,15,15? Answer: Ridiculous! Sorry my friends, but THAT is the current tax system!  The government alters our taxes all the time right now! Unlike the current tax system, 999 requires a supermajority to alter! You are far less likely to see tax increases under 999! Argument 9: the 999 sales tax is just another revenue stream for the government, giving government more control. Answer: What! Are you serious!  999 replaces a seemingly endless number of taxes and 76,000 pages in the current tax code with 3 easy to understand taxes! This is the worst argument by far! Give me a break! Argument 10: 999 will not raise enough revenue, you can't lower taxes for everyone and get enough revenue. It will not be revenue neutral. Answer: Not True! You have to look at 999 from a dynamic analysis. Don't be fooled by all the analysis of 999! They are nearly all static which assumes no behavioral change in business and consumers.  With static analysis 999 would not possibly work.  However, like Cains analysis, a dynamic analysis realizes the boom in confidence business and spending, thus generating the necessary revenue. The beauty of 999 and the fair tax is the economic driving factor.  Consider our current tax system as a row boat. This boat has a row team of 4.   The first three are lean and athletic. The fourth heavy and out of shape. Under a static analysis if you remove the heavy rower the boat will be at 3/4 power. Under a dynamic analysis if you remove the heavy rower the boat becomes much lighter and the remaining three are relieved of the burden and reenergized. the boat becomes much lighter and much faster. So if the first thee lean rowers are 999  And the fourth heavy rower is the burdonsome taxes on corporation and individual  It now makes sense that removing the  heavy out of shape rower (burdensome taxes) will allow the lean rowers (999) to create more revenue!  Herman Cain 2012!

 

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