Yes, but as far as I understand Cain’s plan, corporations will pay 9% instead of 35%, so necessarily prices will come down. You are correct that businesses will pass on their taxes as a cost, but 9% instead of 35% sounds pretty good.
bump
I forgot to mention that the biggest squeal from leftists will be about the state taxes. Here in WA, the sales tax is 9%, which would go to 18% under the plan. Now that sucks, but with the reduction in prices overall everything will be much cheaper. If you work and pay taxes, that is. I like the fact that everyone will have a stake, including the 47% of Americans who pay NOTHING. It will put them in the game.
>>>Yes, but as far as I understand Cain’s plan, corporations will pay 9% instead of 35% so necessarily prices will come down
As opposed to the current corporate tax that is based on profits, the 9-9-9 plan taxes business receipts less inputs.
From the Laffer article in the WSJ:
“Thus, Mr. Cain’s 9-9-9 tax base for his business tax is $9.5 trillion, for his income tax $7.7 trillion, and for his sales tax $8.3 trillion. And there you have it! Three federal taxes at 9% that would raise roughly $2.3 trillion and replace the current income tax, corporate tax, payroll tax (employer and employee), capital gains tax and estate tax.”
It would appear that about 38% of the revenue from the 9-9-9 plan would be derived from the corporate tax. Looking at the current Monthly Treasury reports, corporate income tax accounts for about 8% of revenues under the current plan. Assigining half the payroll tax receipts brings the corporate share to 26% of revenue. I’m not sure how they will be able to roll back prices.
price of wheat goesup, the price of bread goes up.
price of wheat goes down, the price of bread stays up
this is a very old saying
2 things
Herman is nutz if the thinks CONgress will give up the power they hold ie- the power to buy and sell favors thru tax law.
Herman assumes that prices will go down if taxes go down.
He hopes big.
If I had to chose a candidate today it woud be
None of the above.....
good luck to HErman and all,, but he is just too much a lightweight to be a player.