The only way to justify that statement is to ignore the free market which inevitably lowers prices through competition.
>> The only way to justify that statement is to ignore the free market which inevitably lowers prices through competition.
Looking at the economy as a whole, if there are to be tax savings to business with which to lower prices (pressured by competition), then the net amount of taxes extracted from the economy must decrease.
Cain’s plan, being revenue neutral, does *not* decrease the net portion of GDP that goes to government.
No one has explained where this price-lowering savings will come from. Yes, corporate taxes may decrease, but other costs will go up to compensate. They HAVE to, if the plan really IS revenue neutral.
Therefore I can’t believe across-the-board price cuts will actually happen. The only way to give business a break is to cut NET taxes, cut government SPENDING and reduce burdensome regulations. Cain’s gimmick, while it’s an effective “brand” for him, doesn’t quite connect these dots for me.