A business transactions tax would radically broaden the base for businesses. Each business would pay tax on gross receipts less payments to other businesses. Allowing the subtraction of payments for intermediate goods yields the value added by the company. Subtracting investment as well yields a subtraction method value-added tax. (Page 7)If Herman Cain's own web site calls it a value added tax, why are you arguing with him?
“You should tell that to Cain’s scoring team, who said this about the business tax...If Herman Cain’s own web site calls it a value added tax, why are you arguing with him?”
Debate is circling around whether 9-9-9 proposes a *new* VAT tax. We already have a corporate tax, in case you didn’t notice.