Again, Common Sense Echoes From The Past

Milton Friedman speaks on minimum wage and the place and price of free enterprise in America.

I had an interesting conversation with a young journalist last night (who thought he was a liberal, but actually was more conservative that most his peers), who did not understand, and despised, Cain’s 9/9/9 proposal, and had a real problem with the fact that it imposed more taxes (actually some income tax) on the poor.  The fact is when you reform the tax code (see a 5′ high pile of gobbledegook) you eliminate taxes far more than a simple nine percent sales tax, income tax, and corporate tax imposes.

Take a Coke as an example.  Currently you can buy a bottle of coke (for the sake of  argument) for $1.00.  His understanding was that the Coke, under Cain, would now cost 9% more because of the national sales tax imposed under Cain’s 9/9/9 plan.  The fact is the 35% corporate tax charged to Coke; to the company who supplies the cans/bottles; to the trucking companies who haul the raw materials in and the finished product out; to the raw material suppliers; and yes to the accountants who do their books…are all now substantially reduced.  Eventually that should reach down to the cost of an individual Coke which would be greatly reduced.  That’s the beauty of the 9/9/9 proposal.  Not to speak of the fact that every American would now be paying part of the load in a more direct manner.  Obsessive consumers will pay more sales tax than the frugal; the rich, who consume more, will pay more due to the sales tax.  Corporations will pay while now they avoid, by doing exactly what the government wants them to do under the current tax code, and as you well know, government doesn’t always want whats in the best interest of the economy, which reflects back on the best interest of you and I, the People.

The fact is, the consumer has always paid the corporate tax, and every tax imposed anywhere in the economy, only those costs are reflected in the cost of the product purchased…hidden there if you will.

Don’t miss this video:  Milton makes it clear….

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