It must run in the family. . .

A guest blogger's take (my brother):

When every member of your party running for president all agree that your plan will raise taxes on the middle class, there is something very wrong. Also, when a centrist research group finds the plan will raise taxes on 84% of Americans BEFORE the democrats get to it, now its just "very dangerous" as the tax hawk himself Grover Norquist warned.

Cain's plan (I can't bear to repeat the numbers) is ill-researched, un-vetted, and too complex for even Herman to understand. He is running a campaign with barely 30 staff members (when they're not packing up and heading for the exits) with only 3 people propping him up in the state of New Hampshire. His funds are abysmal, in fact, he spent 700K more than he took in from July to September. Not exactly a fiscally sound move. Seeing the obvious fragility of his campaign, I can only imagine how chintzy his economic team must be to put together 999.

I get why "dmac" and others are so excited about a tax discussion, but much like obamacare, it's a discussion that veers off the path of increasing jobs. Taxes are the easy target because they're so much of an abject disaster and a burden on most Americans that cleaning it up sounds like the sexy/daring thing to do. The fact is this type of tax reform is not going to happen fast enough to make a difference in time to get the economy working again. Congress can't even pass a kidney stone, let alone collectively shove the IRS into the rubbish bin. Even if republicans took the Senate and Cain was elected, 999 still wouldn't happen and that's a fact. It's a tar baby. Newt hit the nail right on the head tonight, this type of tax discussion commands so much debate and analysis, it distracts from the "Elephant in the room" which is jobs. Of course the argument will be, "Taxes effect the economy" and that's true, but you have to approach it feasibly and present ideas that can pass congress quickly. We're in a crisis. Anyone could point to the tax code, government subsidies for oil companies, Bernanke, foreign aid, the war in Afghanistan, and so much more to illustrate ways to help the economy. But nothing would make a more positive impact on the whole of our economy than dramatically reducing unemployment ASAP. Put people back to work, put money in people's pockets, and simply put in place a more permanent tax situation that the big companies and banks can rely on. Take away the uncertainty, strengthen the middle class, and you loosen up the stranglehold on credit and housing. This is more than taxes, it's everything and "everything" has to include at least 59 points, not three numbers.

The argument about the 9% effectively being a VAT tax is a valid one. Hawaii has a "General Excise Tax" that is effectively a VAT tax with a different name, so their products are taxed every time they are sold from manufacturer, to distributor, to store, to consumer.  Ever tried to get a $5.00 foot long in Hawaii? It doesn't exist. As a result, Hawaii enjoys the highest utility rates, the highest food prices, the highest gas prices, and the lowest manufacturing of any of the 50 states. Contrary to popular belief this is not because it is an island. It is well frequented and easily stopped on by shipping vessels and the like. Hawaii's high prices are the result of it being the only state that has this tax. The only way it survives is from huge government subsidies from Washington and revenue from tourism which in on the decline.

Separately, states that currently have no sales tax, such as Oregon and New Hampshire, are not going to want to adopt one. Especially with such high property taxes.  Similarly states that have a sales tax depend on that revenue and won't get rid of it. Sales tax in many states would breach 16% under the mark of Cain. Sorry, couldn't resist.

I don't see how dmac can say that "the truth hasn't come out yet" about Romney's plan or that his plan "doesn't fundamentally address the weaknesses and economic disincentives in the current code". What do you call a reduction of the corporate tax rate to 25%? Or a tax break for companies that bring their billions back to the United States that is overseas. Or the elimination of taxes on interest, dividends, and capital gains for low or middle income earners. Or the elimination of the estate tax. All of these items don't seem to be hiding any "truth" to me. This is straightforward stuff. Each is a logical approach to reforming the tax code in a way that would stimulate the economy and pass congress. This is not to mention any of the spending cuts he's proposed. His plan may be "unimaginative" in the sense that it's not brand new ideas, but let's not confuse imagination with delusion as Cain's plan does. Romney's plan will act fast and could actually pass.

Tyler