Did anyone watch this? Because I just heard Herman Cain say that his plan hinges on companies lowering their prices because they are not paying as much in taxes.
What company on earth would think, "Hey, I don't need this money, let's lower prices."
Also, his plan encourages others to buy used goods. Doesn't this discourage consumer spending and wouldn't it kill jobs? Obeying live to hear your thoughts (or debate with you) on this subject.
Whaddyathink?
ReplyDeleteI think Herman Cain is riding the Tea Party Wave right now. The same wave that carried then dumped Bahmann and Perry. People think that his tax plan is simple, but in reality it's not. If it were to only include the 9-9-9 steps, it would fail. There are a lot of follow up steps. I have read that one of the steps he wishes to take after 9-9-9 is to get rid of all prepurchase taxes, such as income tax and payroll tax. This would be replaced by a thirty percent sales tax on everything. That way we are taxed not on what we make, but what we sell. While I praise novel ideas, radical plans just don't do well in our government. (Nothing does these days it seems....) Also, I've heard Herman Cain say what is said above, that companies will lower prices because they are not paying taxes. This shows his fundamental misunderstanding of large companies. Perhaps, he, as a CEO, might have done that. Every other company on earth, however, only lowers prices to stay competitive with other companies. They may raise prices because of increasing taxes, but they will never lower them because of lowering taxes. Cain seems like a good enough guy, but I don't think he has enough experience for the job. He has no executive experience and displays a blatant lack of basic economic principles through his comments. That's what I think at least.....
ReplyDelete