Much of the first portion of the debate focussed on Herman Cain’s 9-9-9 tax plan. I’m not sold on 9-9-9 but one line of attack of this plan reminds us of why we need serious tax reform. You’ll find the critiques here:
The homebuilders association said 9-9-9 could be bad for any state where construction is a mainstay of the economy, as in Florida. The association says Cain’s proposal could impose new taxes on rentals, remodeling jobs, mortgages and sales of new homes.
Yes, industries whose lobbyists successfully won big carveouts from the income tax — they don’t want the income tax rate to go down. The lower that tax rates are, the less valuable your home mortgage interest deduction. It’s not just the home-builders and realtors, it’s also other industries — especially lobbyists — who benefit from tax-code complexity. They all oppose any broad tax reform.
Cain was right when he said the lobbyists and special interests oppose his plan.
