Tuesday, November 8, 2011

Peter Morici Says Herman Cain's 999 Plan 'Makes Great Economic Sense'

Here, but doesn't explain why in the same breath he criticizes Cain for being short on explanations (!):

Mr. Cain’s 9-9-9 tax proposal makes great economic sense but when pressed, he cannot explain why it does or how it would work. For example, when asked about how the nine percent sales tax would treat imports, he doesn’t know—this despite the fact that European countries have extensive experience with this issue, economist and lawyers have studied those issues ad nauseum, and the treaties the United States and EU have signed permit applying sales taxes to imports and refunding the same on exports to maintain neutrality in competition between foreign and domestic products.

I think Herman is being coy about treatment of imports because he intends to apply tariffs wherever necessary to level the playing field to make American exports more competitive.

Herman can't be entirely candid about that sort of thing at this stage because Republicans have been hooked on free trade since at least the 1960s. In the general campaign against Obama, however, Cain could conceivably make a bid for the Democrat union vote with such a tariff threat as part of an overall strategy to form a broader coalition not unlike Reagan put together in the 1980s.