Gambling with our tax codes

Nine-nine-nine. Sounds like a card game. Unfortunately for me, it’s not.

But if you’re like me, you’re totally confused by the Republican presidential candidates’ plans for tax reform. The hopefuls are attempting to distinguish themselves, and it appears that they will promise anything.

Given our current economic crisis, there’s no doubt that the current tax codes need to be altered. What worries me most are the shortfalls and inconsistencies of the candidates’ tax code reform proposals.

Both Herman Cain and Texas Gov. Rick Perry have released flat-tax plans that they believe will be the answer to our country’s tax problems, raise revenue, protect the middle class and lift our country out of recession. Perry, who has been struggling to keep up with front-runners Herman Cain and Mitt Romney, released his proposal in an effort to gain support from conservatives. It would allow Americans to choose between their existing income tax rate and a new flat tax of 20 percent. Perry calls his spending reform plan the “Cut, Balance and Grow” initiative.

As you probably know by now, Cain’s flat tax plan, the 9-9-9 plan, would create a 9 percent national sales tax and change the corporate tax rate and the individual tax rate to 9 percent.

In recent polls, Cain, the former pizza chain CEO, is gaining tremendous ground and is Romney’s main competition. The 9-9-9 may have a nice ring to it, and it certainly has voters’ attention, but unfortunately the plan falls way short. The flat tax system is not going to make things easier on taxpayers.

According to Fox Business News, “The effectiveness of any consumption tax hinges on the strength of consumer spending. U.S. consumer spending in September was near 2011 lows, continuing a declining trend. With American consumers already having to contend with state sales taxes, the added tax will drive even more of them away from stores.”

Perry’s idea would create tax-compliance disarray. Having every American choose between the current system and the 20 percent flat tax would create a bureaucratic nightmare. Although it could bring about spending cuts, it is in no way practical.