Tuesday, October 18, 2011

The Flip of All Flops: Cain Hated a National Sales Tax Just 11 Months Ago

H/T leighrow

Herman Cain penned an Op-Ed called "Don't Be VAT Stupid" in November of 2010. It was picked up by several outlets including The Daily Caller.

Herman lists some reasons why a national sales tax is terrible.

First, we have a spending problem in Washington, D.C., not a revenue problem. The Commission claims their goal is to reduce the deficits by $4 trillion over the next decade. The task force says its plan would save $6 trillion by 2020. It’s sort of like dueling promises that would never happen, because when has a proposed cut in Washington D.C. ever produced the intended savings over 10 years? Never!

Even worse is reason number two: In every country that has established a VAT with the promise of reducing its national debt, the VAT has eventually gone up or expanded on top of the existing tax structure. After discovering many of the tax grenades in the recently passed health care deform bill, which is already driving costs up and access down, it would be real easy for an overzealous bureaucrat to insert the language in the legislation “national retail and wholesale” tax.

For the liberal naysayers who say that would not happen, you lose! Just look at the Social Security system, Medicare and Medicaid. Over the years since their inception, taxes have gone up, benefits have gone down and they are still on a path of insolvency.

A national retail sales tax on top of all the confusing and unfair taxes we have today is insane! it gives the out-of-control bureaucrats and politicians in denial one more tool to lie, deceive, manipulate and destroy this country.

Is this guy for real? Now he totally discounts these very arguments as to why a national sales tax is bad.


Terrye said...

I think Cain would say that he is not talking about a sales tax on top the current tax code..but as part of his new tax code. I know it does not really answer the question, but I bet that is what he would say.

Concerned Patriot said...

He is saying that you should not have a value added tax. What he is proposing is instead of the current tax code not in addition to the current tax code. He is saying you should not have a value tax added. It is different and the Romney fans (state v. federal) should understand the difference.

leighrow said...

Terry and Concerned patriot:

Attached is the article from redstates.


Also if you watched Michele Bachman this evening at the CNN debates she stated that in essence the 9% business tax is a VAT tax because a product will be taxed 9% at different phases of its life cycle and the final retail tax will be 9% to the consumer.(raw materials purchased,parts purchased to be assembled into final products,etc..)

Grover Norquist and other economic analysts also refer to the 9% business tax as a VAT for the reason Michele Bachman had stated.

Anonymous said...


Cain never expected to get this far, so his positions are all over the map! Seriously, he wants to electrocute illegals, and release Gitmo prisoners in exchange for hostages--except now he doesn't. Or does he? Ha ha.

He's flying by the seat of his pants. If Perry makes a resurgence, it will be because people don't want the Mormon. That's all he has going for him. So pathetic.