Apparently you don’t understand it is not a business income tax. You can’t compare the insanely high business income tax rates today with Cain’s gross sales tax for businesses. It is a tax on gross sales less dividends, investment goods, and purchases from businesses. Wages are not deductible. A company could be barely profitable and be put into the red by this tax. Even if a company makes no money, they owe the feds tax. The estimates on this are that it will bring in $600 billion a year which is more than what the feds currently take in. It also favors capital intensive industries rather than labor intensive ones. The prices of goods, on average, would not go down.
The flat personal income tax is a good idea.
None of this will ever pass in its current form because it is a regressive tax package that the Democrats will block because they’re constituents would actually have to start paying income taxes.
It’s a nice marketing pitch for the primaries.
>> It is a tax on gross sales less dividends, investment goods, and purchases from businesses. Wages are not deductible.
Seems like payroll is getting taxed twice?
Exactly. It imposes a new 9% tax on salaries and wages, which makes 9-9-9 a VAT AND a sales tax. But he is so dreamy, and I like him, so whatever./s