Aren’t you forgetting the 7.65% payroll tax your company would pay on the $900M in payroll ? Remember, the 9% Business Tax replaces the payroll tax as well as the corporate profits tax.
So you pay $35M in profits tax, but $69M in payroll tax, for a total of $104M in Federal taxes.
So your $1B company would still get a $14M tax break — from $104M currently to $90M under Cain’s plan.
No, because when explaining his 9-9-9 plan Cain always counts the entire payroll tax as an expense borne by the employee which is how he justifies his flat tax and sales tax. I guess he's assuming that when FICA is done away with the companies, out of the goodness of their hearts, will pass that entire savings on to the employees in the form of higher wages. Regardless, you cannot have the same expense be a cost to both individuals and companies. So since Cain doesn't count it as a savings to the corporation then neither did I.