As Herman Cain poll numbers increase all over america, his 9-9-9 plan is being increasingly scrutinized. Some have tried to make the case that it has a lot of down-side through mischaracterizing the facts and changing the assumptions. One of Herman Cain's critics is his GOP Primary competitor Michelle Bachman. I really like Congresswoman Bachman, however her attack on Cain's plan was misleading and cheap. She said that 'If you turn 9-9-9 upside down you get 6-6-6...The Devil is in the details.' In actuality the Devil is in the details of the current 10 million word tax code, and 9-9-9 combats the evil of that tax code (mostly in the way of nuetering the IRS).
9-9-9 will end the evils of zero-liability voters, where they vote for Democrats that pander free stuff to them in exchange for their vote. Under the current tax code, non taxpayers have incentive to vote for redistributive policies, which are championed by Liberal Democrats (like there are any other kind of Democrats). Under Cain's plan everyone, except the poor, would pay a 9% Federal income tax and a 9% consumption tax, which would truly have everyone putting some 'skin in the game.' It would bring people together by the way of being in the same tax structure and eliminating the Government's ability to chose winners and losers in groups of people and businesses. Elimination of tax loopholes, with the exception of charitable donations, is the main component of 9-9-9's "fairness" appeal.
Another knock on the plan is: "The consumption tax is just another tax that Congress can raise to higher levels in the future." That maybe so, but they can raise tax rates under the current tax code. Furthermore, Americans will be much more aware and vigilant in keeping the 9-9-9 tax from growing when most everyone is paying those taxes. They will most definitely rebuke any attempt to raise the consumption tax by Congress, and Congress will have no choice but to aqueous when their reelection is threatened by most of the electorate.
Additional reading...
Mark 10:21-22 Jesus, looking at him, loved him and said, "You lack one thing; go, sell what you own, and give the money to the poor, and you will have treasure in heaven; then come, follow me." When he heard this, he was shocked and went away grieving, for he had many possessions.
Matthew 25:14-30
14 For it is like a man going on a journey, who summoned his slaves and entrusted his property to them. 15 To one he gave five talents, to another two, and to another one, each according to his ability. Then he went on his journey. 16 The one who had received five talents went off right away and put his money to work270 and gained five more. 17 In the same way, the one who had two gained two more. 18 But the one who had received one talent went out and dug a hole in the ground and hid his master’s money in it. 19 After a long time, the master of those slaves came and settled his accounts with them. 20 The one who had received the five talents came and brought five more, saying, ‘Sir, you entrusted me with five talents. See, I have gained five more.’ 21 His master answered, ‘Well done, good and faithful slave! You have been faithful in a few things. I will put you in charge of many things. Enter into the joy of your master.’ 22 The one with the two talents also came and said, ‘Sir, you entrusted two talents to me. See, I have gained two more.’ 23 His master answered, ‘Well done, good and faithful slave! You have been faithful with a few things. I will put you in charge of many things. Enter into the joy of your master.’ 24 Then the one who had received the one talent came and said, ‘Sir, I knew that you were a hard man, harvesting where you did not sow, and gathering where you did not scatter seed, 25 so I was afraid, and I went and hid your talent in the ground. See, you have what is yours.’ 26 But his master answered, ‘Evil and lazy slave! So you knew that I harvest where I didn’t sow and gather where I didn’t scatter? 27 Then you should have deposited my money with the bankers, and on my return I would have received my money back with interest! 28 Therefore take the talent from him and give it to the one who has ten. 29 For the one who has will be given more, and he will have more than enough. But the one who does not have, even what he has will be taken from him. 30 And throw that worthless slave into the outer darkness, where there will be weeping and gnashing of teeth’” (Matthew 25:14-30).
Monday, October 24, 2011
Thursday, April 7, 2011
Quote from the future
People had a choice a long time ago between havin' all them nice things and freedom; of course they chose comfort." - Johnathan E. (Houston Energy Corp. Rollerball Club)
Sunday, February 7, 2010
G DUB: Keeping it Simple
A people... who are possessed of the spirit of commerce, who see and who will pursue their advantages may achieve almost anything.
GEORGE WASHINGTON, letter to Benjamin Harrison
GEORGE WASHINGTON, letter to Benjamin Harrison
Friday, April 10, 2009
Principle #16
Principle #16 - GOVERNMENT SPENDING - THREE AREAS: TAX, BORROW, PRINT.
Spending tax revenue is a less efficient use of capital than individual consumers using that same money to make investments. For example, spending tax money on welfare programs is less efficient than individuals or business using that same money to create job opportunities and make those people on welfare more productive members of society. In addition, when the government borrows money by issuing Treasury Bonds, it creates huge debts that will be passed on to future generations. This is a negative influence on the economy because if there was a massive call on these debts, our country would be bankrupt. Printing money to finance more government programs also has a negative influence on the economy. When you print money, you devalue dollars, which creates fiat inflation because that money is not backed by anything.
Spending tax revenue is a less efficient use of capital than individual consumers using that same money to make investments. For example, spending tax money on welfare programs is less efficient than individuals or business using that same money to create job opportunities and make those people on welfare more productive members of society. In addition, when the government borrows money by issuing Treasury Bonds, it creates huge debts that will be passed on to future generations. This is a negative influence on the economy because if there was a massive call on these debts, our country would be bankrupt. Printing money to finance more government programs also has a negative influence on the economy. When you print money, you devalue dollars, which creates fiat inflation because that money is not backed by anything.
Principle #15
Principle #15 - FOR EVERY ONE JOB CREATED IN THE PUBLIC SECTOR, ONE IS DESTROYED IN THE PRIVATE SECTOR.
Principle #14
Principle #14 - WHEN IN DOUBT, DO NO HARM.
If it ain't broke, don't fix it.
These bail outs and particularly the Stimulus Bill is doing harm to an economy that the current administration admits: "We haven't seen a crisis like this before."
They're failing to bring to light that they know if you spend , print, and borrow the amount of money that they have passed through Congress, you create a situation that is perfect for inflation (even hyper-inflation) to occur. The problem for America is the inflation does not immediately manifest itself, so you cannot evaluate failed policies in real time. However, there are real-world examples from history that shows you cannot spend, borrow, and print your way to prosperity. As always, slow and steady economic growth, born from good sound business practices, is the best path to prosperity. There is nothing sound about reckless spending, borrowing over 5% of our GDP, and printing over a trillion dollars.
If it ain't broke, don't fix it.
These bail outs and particularly the Stimulus Bill is doing harm to an economy that the current administration admits: "We haven't seen a crisis like this before."
They're failing to bring to light that they know if you spend , print, and borrow the amount of money that they have passed through Congress, you create a situation that is perfect for inflation (even hyper-inflation) to occur. The problem for America is the inflation does not immediately manifest itself, so you cannot evaluate failed policies in real time. However, there are real-world examples from history that shows you cannot spend, borrow, and print your way to prosperity. As always, slow and steady economic growth, born from good sound business practices, is the best path to prosperity. There is nothing sound about reckless spending, borrowing over 5% of our GDP, and printing over a trillion dollars.
Principle #13
Principle #13 - THE FREE MARKET HAS NOT FAILED, THE GOVERNMENT HAS FAILED.
The Free Market is not a fair market.
The governments latest quest to make sure no large companies fail is really the problem. The government's involvement in everyday market activities is the foundation of the current financial crisis.
For example, when Congress and a Statist(someone that wants the Federal Government to control the individual) President passed the Community Reinvestment Act in the late '70s, they created a dangerous practice of telling banks to make loans to people they would normally turn down due to risk. This, along with a lack of oversight, which is different that a lack of regulation, was a recipe for disaster. The social and economic engineering of left-wing,"big government" elected officials and bureaucrats refused to enforce the regulations that were in place to stop a Freddie Mac and Fannie Mae implosion from happening. As a matter of fact, they encouraged Fannie and Freddie making risky loans because home ownership was at a "all-time high" and more low-income folks were now homeowners. This was also fueled by a Federal Reserve that kept interest rates artificially low. Many people in Washington and on Wall Street knew that there was a brick wall at the end of Easy Street, but it was a case of no one wanting to take the punch bowl away while the party was in full swing.
The Free Market is not a fair market.
The governments latest quest to make sure no large companies fail is really the problem. The government's involvement in everyday market activities is the foundation of the current financial crisis.
For example, when Congress and a Statist(someone that wants the Federal Government to control the individual) President passed the Community Reinvestment Act in the late '70s, they created a dangerous practice of telling banks to make loans to people they would normally turn down due to risk. This, along with a lack of oversight, which is different that a lack of regulation, was a recipe for disaster. The social and economic engineering of left-wing,"big government" elected officials and bureaucrats refused to enforce the regulations that were in place to stop a Freddie Mac and Fannie Mae implosion from happening. As a matter of fact, they encouraged Fannie and Freddie making risky loans because home ownership was at a "all-time high" and more low-income folks were now homeowners. This was also fueled by a Federal Reserve that kept interest rates artificially low. Many people in Washington and on Wall Street knew that there was a brick wall at the end of Easy Street, but it was a case of no one wanting to take the punch bowl away while the party was in full swing.
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