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About the author

Shaun Kenney

Shaun Kenney is the Chairman of the Fluvanna County Board of Supervisors, former Communications Director for the Republican Party of Virginia, and an active blogger since 2002. Shaun lives in Thomas Jefferson's backyard with his wife, six children, and a modest attempt at a farm in Kents Store, Virginia.

Comments

6 Responses to "WSJ: Cain Jumps to Lead Among Republicans"

1. 

   ToR October 13, 2011 07:01 am

   When you’re campaign is based on a pizza slogan and you’re winning against the likes of Paul and Romney, one has really got to wonder about the state of the Republican Party and the country as a whole.

2. 

   JZ October 13, 2011 09:12 am

   No argument here. He did try pushing the FairTax at first, but it took more than a soundbite to explain and more than a 2nd grade education to understand.

3. 

   Shaun Kenney October 13, 2011 11:34 am

   Agreed across the board. And the point is well taken that another avenue for government to tax people is going to be exploited… one more layer on top of the income tax, capital gains, etc.

4. 

   ToR October 14, 2011 03:24 am

   Shaun and HR,

   I’d be interested in your opinions and responses to the following observations and questions. As you know, I don’t agree with most of the people here but I like to challenge my opinions and I’d like to hear what you have to say.

   What do you think the consequences of a 9% national sales tax would be in Virginia? Would we continue to have a 5% state sales tax or how would we generate revenue? Would Virginia implement an income tax and abandon the state sales tax?

   Can you imagine someone going to the store and paying an extra $0.45 for a gallon of milk? Frankly, I can see the protests now. How much would you tack on to the price of a car? Is it across the board or do you have tax holidays for the new school year, maybe Christmas, or the 4th of July; would groceries be subject to a 9% sales tax?

   If we’re trying to simplify the code my guess is that everything someone buys would be subject to the tax; if we start making exceptions then we’d be creating a tax system we were trying to leave? However, what a sales tax on college tuition, rent, or other things we “buy” but don’t think as a purchase do?

   My guess is that everyone would go out and buy many years worth of supplies, renovate their homes, buy a car, and stock up on everything else that’s non perishable before the tax was implemented and we’d have severely reduced consumer spending afterwards. What have retailers said about this plan?

   On a more extreme level, since the following year’s incomes would be taxed at much lower levels people wouldn’t care how much they spent because they’d assume to have much higher net incomes. However, once consumer spending plummeted there’d be job loses, bankruptcies, and we’d be back in another economic crisis. A bit extreme but maybe possible.

   I would also be concerned about the impact to low income Americans, if I’m not mistaken in my reasoning they would be heavily burdened by a 9% national sales tax. If the plan is increase the tax base, maybe a 1% national sales tax would work but I think that would just open the door to tax increases in the future. I wouldn’t like to see the people already struggling to get hit hard by a 10% income reduction (they’re not saving, its all being spent so it’s effectively the same as a 10% income tax).

   A lot of question, I know, but I’m looking forward to see what you think.

5. 

   James "turbo" Cohen October 14, 2011 08:04 am

   999 would piss off people who do not pay taxes. For the people who do (or are supposed to) pay taxes there would be far fewer loopholes for their accountant and lawyer to work and overall most working class consumers would pay their fair share as would the ultra wealthy consumers. The ultra wealthy would continue to pay the most because they spend the most. Want a tax reduction? buy less stuff. Want a real bargain, import less stuff! The 999 plan is easy to remember but it is a conquest to pave the way for the fair tax. The FAIR TAX is the goal (sans 16th) and Hermy knows that it will not be as easy to implement as 999. Right now we have 666 (IRS). Bad (IRS) is worse than imperfect and 999 is imperfect at worst.

6. 

   ToR October 14, 2011 11:30 am

   Proportionally the ultra wealthy do not spend the same as poor people, unless you consider stocks and bonds. Will any investment (stock, bond, security, gold) be taxed at 9% as well?