[aimhigh]

A VAT tax is a Value Added Tax, which means that the value added at each stage of the production process is taxed based on the incremental value produced.

How is that different from Cain's tax? Wouldn't Cain's 9% tax be on every business in the 'food' chain - producer, wholesaler, and retailer?

A business tax is just a hidden sales tax. Cain's program translates to an 18% sales tax. What I like is the idea of eliminating all deductions, but only if it is written into the constitution.

[MNJohnnie]

VAT taxes at every level value is added. A Sales tax only taxes once at the final point of sale.

Yes, it would be better to eliminate the business taxes completely. Unfortunately that is not going to be politically feasible right now. You need a bridge from one system to the other.

9-9-9 eliminates things like the double taxation on capital gains and income as well as massively reducing Congress's power to play political games with the tax code. It also eliminates business's corrupting the political system by lobbying for favorable treatment

NO 9-9-9 is not perfect. It is only completely better then the existing system

[econjack]

Not the same. With a VAT tax, only the incremental value is taxed. Also, in every state I'm familiar with, you can acquire a Sales Tax Exemption certificate that allows you to avoid paying sales taxes on items you plan to resell. Usually, this only requires a state or federal business ID number. That VAT tax has no provisions for exemptions. They are NOT the same beast.