Gross versus Net is a difficult concept for some.
>> Gross versus Net is a difficult concept for some. >>
Indeed. Another difficult concept is that fact that what we have now is probably the most punitive and expensive (for EVERYBODY) monstrosity that could ever be dreamed up in the 7th ring of Dante’s hell - let alone a supposedly free country.
I am losing patience with the dolts. Give me Perry, Cain, or Newt’s plan over what we have now and whatever the imperfections, we can live with.
OK, I'm a manufacturer. I don't operate in an Opportunity Zone so I can't deduct my labor costs. About half the goods I buy are imported so I can't deduct those. I don't export so I can't deduct that. My capital investments remain constant. So where before I could take my gross and deduct labor expenses, cost of raw materials, any other operating expenses, and capital expenses in order to find my net which would be my taxable income, under Cain I take my gross and deduct my capital expenses, maybe some of my operating costs, and only half my cost for raw materials to find my taxable income. So my tax rate may go down, but the amount I'm taxed on goes way, way up. Where are the savings I'm supposed to pass on to the consumers?