Cain-sian economics (Herman, that is)
Herman Cain’s column the other day making the case for his “999″ tax reform plan is worth reading if you’re one of those taking a closer look at his candidacy. It is radical, of-course, but I don’t know who can possibly say that something radical isn’t needed to overcome the deep-seated economic doldrums which have set in here in America (and on the current trajectory are only going to get much worse). The two most significant things about his plan that strike me are (1) it does seem to be seriously pro-growth and (2) it would include everyone in the country in the same simple tax system, so breaking down the tug of war that currently exists. “What? You mean low income people would now pay federal taxes?!” Indeed, that’s his plan: but they already do, in the form of payroll taxes (Social Security and Medicare) and the corporate and other taxes that get passed down to them in everything they purchase. Cain’s plan would wipe out payroll taxes, and roll everything into a single flat 9% rate for individuals. And of-course a big advantage of any flat tax system is that it disarms the politicians, preventing them from using tax code fine-tuning to manipulate people, rewarding friends and punishing enemies. But read his own case for the plan rather than my characterizations.
I find it interesting to note that in the New York Times today none other than David Brooks is making the case for radical steps that in some respects reflect exactly what Cain is proposing:
Simplify the tax code. End corporate taxes and create a consumption tax. Reshape the European Union to make it either more unified or less, but not halfway as it is now. Reduce the barriers to business formation. Reform Medicare so it is fiscally sustainable. Break up the banks and increase capital requirements. Lighten debt burdens even if it means hitting the institutional creditors.
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Naturally Brooks is overreaching in an absurd way (“Reshape the European Union”?), but like all New York Times employees he gets paid to be absurd with a straight face. Is it possible he would lean towards supporting Herman Cain’s candidacy, based on Cain’s tax plan? Well, I have to doubt it. I cannot imagine Mr. Cain has the kind of perfect crease in his pants that won the admiration of Brooks for Barack Obama. What Brooks would really like (and this is clear from his “I’m a sap” column a couple of weeks ago) is for Barack Obama to follow his advice. Then all would be forgiven and Brooks and Barack could live happily ever after in a cottage filled with true moderation, post-partisanship, eloquence, reasonableness and exquisitely pressed clothing.
That’s not going to happen, and Brooks is even more of a sap than he realizes when it comes to Obama.
Herman Cain, however, is no sap, and the traction he’s getting from winning the Florida straw poll is quite significant. If he can win enough people over to his tax reform plan, his candidacy is going somewhere (and all the more so while Rick Perry continues to defer coming up with specific plans of his own).
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Addendum: And then there’s this just up on Drudge.
Of-course Bernie Madoff would poll respectably against Obama right now, but still …
