Jerry Brown for Obama Economic Advisor?

[I AM NOT THAT GUY 5,715]

(originally posted February 10, 2010)

Will Jerry Brown's 1992 signature issue, flat tax, rise again in 2010?

Former GOP presidential candidate Steve Forbes, a longtime proponent of the flat tax, tells us that California State Attorney General Jerry Brown "was ahead of his time" in floating the then-revolutionary concept of that simplified tax system during 1992 Democratic presidential campaign.

Today, with California in its toughest financial crisis yet, Republican Forbes said he and Democrat Brown have "compared notes over the years" on the idea -- and it may be back to the future: the flat tax could be an answer for California's current economic malaise.

"If done right, it would profoundly and positively change the economy in California," said Forbes, who insists "a low single digit rate would unleash creativity," as well as pump up the economy in a state desperately in need of economic reform.

That's why "I'm looking forward to (Brown's) campaign: what he proposes on taxes, and on the public unions," said Forbes, who is making the media rounds as author of the recently-published book, How Capitalism Will Save Us: Why Free People and Free Markets are the Best Answer in Today's Economy."

With just four months until the June 8 gubernatorial California primary, Brown -- the sole 2010 gubernatorial candidate on the Democratic side -- has run a largely under-the-radar campaign and been mum on his position regarding what was once his signature issue.

"He hasn't said anything more about it recently," his campaign manager, Steven Glazer, said in response to questions on his current position.

Forbes, on his current book tour, has mentioned Brown's past position promoting the flat tax as one that is both current - and credible.

"He's been around as long as I have," said Forbes of Brown, in a recent interview with the Chronicle. "His (flat tax) proposal is a little different than mine, but the concept of basic simplicity is the same."

As a 1992 Democratic presidential candidate, Brown advanced the idea of a flat 13 percent tax rate for all Americans. Brown took some criticism from the media back then for allowing no low income exemptions for the poor in his plan -- but the Democratic presidential candidate insisted then that "with it, stock markets will go through the roof, businesses, will thrive and millions of Americans will get back to work."

Read more: http://www.sfgate.com/cgi-bin/blogs/nov05election/detail?blogid=14&entry_id=57019#ixzz0l1J9Qdg5

[one...two...tree 2,762]

Bill, are you a fan of the Laffer Curve?

[I AM NOT THAT GUY 5,715]

Bill, are you a fan of the Laffer Curve?

I was watching him last night. He is an interesting fellow. He likes an 11% inclusive flat tax to replace all Federal Income and Payroll taxes for the individuals, and a 11% tax on earnings for all businesses to replace the current Federal bussiness taxes. He would settle for Jerry Brown's version in a heartbeat. He said so yesterday.

His basic models seem to make mathematical sense as far as set theory in concerned. I would have to study further to give you a better answer.

[one...two...tree 2,762]

I was watching him last night. He is an interesting fellow. He likes an 11% inclusive flat tax to replace all Federal Income and Payroll taxes for the individuals, and a 11% tax on earnings for all businesses to replace the current Federal bussiness taxes. He would settle for Jerry Brown's version in a heartbeat. He said so yesterday.

His basic models seem to make mathematical sense as far as set theory in concerned. I would have to study further to give you a better answer.

A VAT would follow along the same lines. If the Fed is considering implementing a VAT, would you be in favor of it?

[I AM NOT THAT GUY 5,715]

A VAT would follow along the same lines. If the Fed is considering implementing a VAT, would you be in favor of it?

A VAT is a whole other animal. A VAT only works with price controls. Most of the countries using the VAT use price controls, on every thing from the price of a liter of fuel, to a kilo of rice. The VAT is a dirty scheme to use a hidden tax to raise revenues, without anybody paying any real attention, and putting the blame on businesses for the high prices, That is why price controls become necessary, to give retailers some cover. As I showed in the last post, a VAT is anti-business.

A NST, on the other hand, is up front and in your face. People will be reminded every time they buy something, and the tax is added on top of the purchase price. No hiding that, and the retailer doesn't have to make any excuses, for something he has no control over.

The only businesses that will profit from a VAT will be those that buy and sell on the black market.