[justsaynomore]

There is no “business income tax” in Cain’s plan.

There is a 9% flat income tax the employees pay that replaces all payroll taxes.

There is a 9% corporate tax (which is currently between 25-30%)

There is a 9% sales tax.

[DTxAg]

Call it whatever you want. Right now, if a company pays its employees $100,000, it pays $7,650 to Social Security & Medicare, but the $100,000 is a business deduction (so there is no 35% tax on that).

Under Cain's plan, the business pays $0 to Social Security & Medicare, but the $100,000 is NOT a business deduction, so the business owes $9,000 under the "corporate tax."

[DTxAg]

In case you're curious, here is the relevant part of Cain's plan:

Business Flat Tax – 9%
Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.(My comment: no payroll deduction)
Empowerment Zones will offer additional deductions for payroll employed in the zone.(My comment: payroll deduction)