TrueblueNZ

By Redbaiter- in the leftist's lexicon, the lowest of the low.

For Herman Cain Critics- Difference Between Sales Tax and VAT

This is for Herman’s GOP rivals who continue to erroneously claim that his 9% Sales Tax is a Value Added Tax. (One picture is worth a thousand words.)

 

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October 20, 2011 - Posted by | American Politics

9 Comments

  1. First of all, most of our current financial problem stems from unbridled spending (supporting banks that had been forced to make unsound loans under threat of felony discrimination charges), so talk about the ways to tax and about “revenue neutrality” should be really tick everybody off. Cut the unprincipled spending off! (Prosecute the CRA for felony extortion, and if any are already dead, dig their remains up and hang them in the halls of Congress.) Spending tax dollars and floating national debt must be stopped. Those who have funneled funds to reward political cronies should be prosecuted for violation of Fed procurement rules. I wish Cain — or anyone — spent more time on this than on trying to sell “revenue neutrality.”

    Cut the damned spending.

    Second. There are pros and cons with Cain’s plan.

    Pro: I agree his national sales tax not a VAT primarily because the corporate flat tax is not on the whole price of the goods being transferred. A vat IS charged on the value at the point of transfer. People in America have not a clue about Value Added Taxes unless they have traveled to where they see it.

    Cut the damned spending!

    Con: However, if anyone thinks the IRS is bad now, wait to discover agents sticking their noses into every penny-ante transaction anyone engages in. That will be a real terror. There will be witch-hunts for black-marketeers such as Americans has never dreamed of. That nightmare is never mentioned when a national sales tax is brought up. Why the hell not?

    Cut the damned spending.

    Third. In that diagram above RB, the effect of the 9% corporate tax is not shown. Because it is not charged on delivery price does not mean it doesn’t impact consumer costs. Of course it does. Especially on imports that cannot be homegrown. This from Mr. Cain’s site: “Gross income less all purchases from other U.S. located businesses.” See that? There is a hidden tariff in that corporate tax. And that doesn’t preclude additional tariffs and excises as Congress may choose to add, also not allowed to be deducted. Do you recall the historical disaster of the infamous Smoot-Halley Act of 1930?

    This is long enough. I wanted to add to this thread that Mr. Cain’s 9-9-9 act is no bed of roses as that chart might indicate. That 9% sales tax, even if not patrolled by IRS snoops and informants would still be accompanied by a 9% corp tax that even Mr. Cain must admit adds some aspect of a VAT in practice. The money to pay those corp taxes ultimately comes from the consumer.

    Cut the damned spending you Statist bastards. And while you’re at it, get rid of the watermelon EPA which has exceeded all bounds of legitimacy. Cut the spending on them to zero!

    Comment by Pascal | October 21, 2011

  2. One more symbolic Con. A big one.

    Does Herman Cain have a deaf ear or something? Are his adviser’s all paid by the other side?

    How can anyone have not warned him to choose 8-8-8 or 7-8-9 or whatever instead? Just to keep the Left from doing what you know they will do? Fly sky-writers all over the country to put 9-9-9 in the sky with “sign of the beast” written along side it. The Left projects its evil first of all, and turns everything upside down.

    This is the kind of psy-ops that power brokers pay good money to see inflicted on their opposition. I thought it was terrible political blindness for Michelle Bachmann to hire Ed Rollins as her campaign chief (now sidelined thank God). This easily flipped 9-9-9 symbol is far worse.

    Comment by Pascal | October 21, 2011

  3. I think you and I agree Pascal that if Romney gets the nomination, the people who are most responsible for enabling America’s decline will have won again.

    Comment by Redbaiter | October 21, 2011

  4. Absolutely RB. Some of the other choices are not good either, but at least they do not have this video record that admitting to us how bad they’ll be.

    Comment by Pascal | October 21, 2011

  5. Re the 9 9 9- I don’t know if Herman would have given any thought as to how this might be used against him. Probably, but I believe he would have discounted it as unworthy. I think most of all, Herman is a mathematician. (He has some awards of degrees or has studied it or some such) He is exceptionally good at figures, as he has proved in the debate with Bill Clinton that is around on Youtube.

    I’d say Herman did the maths, and decided 999 was the best of any options, and went with it because he believed it.

    That Michelle Bachmann was the first to turn it upside down finished it for me with her. I thought she was much better than that, but she seems to have developed a desperate manner of late that is to me off -putting, and I have actually been surprised at the lack of empathy I now have for someone I once thought pretty highly of.

    Comment by Redbaiter | October 21, 2011

  6. As a respected engineer (hard science applications), I do not believe for one moment that the theoretical formula that Herman’s economists came up with simply had to go with 9-9-9 and not another combo. That is especially true given that macro-economics is a notorious soft science (e.g., how accurate has Keynes ever been unless economic destruction was the goal?) For political advantage, and to aid in spending reductions, at least 7-7-7 sounds lucky to everyone! :)

    I do not care how good a micro-economist Mr. Cain has been (God-father’s success). His mathematics degrees may be as meaningless to his actual business success as was my undergraduate engineering degree to mine. And are invariably useless in macro economics where a+b-c-d+e*f = whatever the despot wants them to be.

    What those degrees prove is that he has a good logical mind. God bless him. If you followed that link I posted on the other thread to those videos about Herbert Marcuse, you know that the Left redefined logic to “whatever destroys the West.” They will have a field day with 6-6-6 and you know it. And the sheeple will fall for it because of what the Frankfurt School has done to the teaching of logic. I did not know of Bachmann having pointed it out. She’s been a disappointment on many levels, I agree. This is far from her worst. It was low-hanging fruit for crying out loud — it was so obvious. Again, where were his advisors. “Herman, I don’t care if you think you got 9-9-9 from God Himself, that number is too easy.”

    Again, I fear the power brokers are wangling these political advisers and these debates (hosted by CNN and MSNBC a number of times like the GOP feels they are good old reliable, trustworthy, unbiased, etc, etc, etc. :rollseyes:) so that Mitt Romney becomes the GOP nominee. DOOM!

    It’s sickening to watch this all unfold before my tired eyes RB. I pray for my country.

    Comment by Pascal | October 21, 2011

  7. “It’s sickening to watch this all unfold before my tired eyes RB. I pray for my country.”

    For those of us who saw the US as an unequaled inspiration, it is bad too.

    Here is the Cain video I mentioned. He is extremely quick mentally, considering he’s standing on his feet with an audience. Not many politicians I know could carry this off so well.

    Comment by Redbaiter | October 21, 2011

  8. Yes Mr. Cain was assured up against the Prez — in what year, 2004? Undoubtedly before Hillarycare almost killed BC’s presidency. He’s a great speaker, but that is a PRO for him.

    Listen to Mr. Cain’s opening in this clip and think of the implications.

    “Mr. President. Thank you very much for this opportunity. And I would first like to commend you on making health care a national priority.”

    You might say Mr. Cain was laying the groundwork quite smoothly so that he could shortly imbalance Mr Clinton as he undoubtedly did. (I think Mr. Cain exposed a bit of the dixiecrat still in Clinton, what with Clinton raising his eyebrows, surprised that a black man was upstaging him.)

    However, from a conservative perspective, the last thing I would have ever commended Clinton on was his making healthcare a national issue. Socialized medicine has always been a <strikeProgressive Incrementalist “trojan horse” — Reagan’s phrase.

    Pray for us RB.

    Comment by Pascal | October 22, 2011

  9. Progressive

    Comment by Pascal | October 22, 2011


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