Godfather of Supply-Side Economics Supports Cain’s ’9-9-9′ Plan
The Godfather of supply-side economics, Arthur Laffer, has given Herman Cain‘s signature “9-9-9″ economic plan a critical boost, even as it has come under heavy fire from his GOP presidential competitors
The famed economist told HUMAN EVENTS that the proposal was pro-growth and would create the proper conditions for America’s economy to expand and thrive again.
“Herman Cain’s 9-9-9 plan would be a vast improvement over the current tax system and a boon to the U.S. economy,” Laffer told HUMAN EVENTS in a statement. “The goal of supply-side tax reform is always a broadening of the tax base and lowering of marginal tax rates.”
Added Laffer: “Mr. Cain’s plan is simple, transparent, neutral with respect to capital and labor, and savings and consumption, and also greatly decreases the hidden costs of tax compliance. There is no doubt that economic growth would surge upon implementation of 9-9-9.”
Laffer also said that “such a system provides the least avenues to avoid paying taxes, yet also maintains the strongest incentives for work effort, production, and investment.”
At the GOP presidential debate in New Hampshire on Tuesday, Cain’s plan received criticism from many of the candidates on stage.
Former Utah Gov. Jon Huntsman said that Americans needed a plan that was “doable-doable-doable” when asked his opinion on Cain’s “9-9-9″ plan.
Rep. Michele Bachmann (R.-Minn.) said that the “9-9-9″ plan was not “a jobs plan,” but was rather “a tax plan.” Bachmann also complained of Congress getting another revenue stream from the plan and said, “you turn the 9-9-9 plan upside down, and the devil’s in the details.”
Former Pennsylvania Sen. Rick Santorum said that the “9-9-9″ plan was not a passable solution.
Further, Cain has been criticized from the left as well, as charges that his “9-9-9″ plan is regressive have been made, charges that Cain has often refuted by citing that the payroll tax would be eliminated under his plan and used goods would not be levied sales taxes.
As Cain’s profile increases and poll numbers rise, his opponents will attack him more fiercely over his “9-9-9″ plan, but it looks like Cain has found an ally in Laffer, an economist who is more than respected by fiscal, pro-growth conservatives.
“9-9-9″ calls for a nine percent tax on income, a nine percent national sales tax, and a nine percent corporate income tax.