Reply #3: It's

[ProSense]

"No one ever said republican voters were bright."

...not just Republicans. They thrive on gimmicks that fool people, and hope no one calls them on it.

Krugman: A Bit More About Cain

A brief note while waiting for a family member to finish with the doctor: From comments I see that some readers believe that Cain’s second “9″ is a profits tax, which I’ve argued in the past probably falls on capital owners. But it isn’t: it’s a tax on all business income, defined as sales minus purchased inputs and dividends — but with no deduction for wages. So the new element here is, in effect, a 9 percent tax on wages paid.

And the almost universal belief of economists is that taxes on wages, whether paid directly by the worker or by the employer, basically fall on the worker. For those who know their Econ 101, it’s standard incidence analysis: since the overall supply of labor seems to be pretty wage-inelastic, the supply side bears the burden.

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