35% to 9% is a big difference.
wholesale product taxed 35% to make the product.
cains plan: wholesale product taxed 9% plus your 9%= 18%
well no—wholesale product is not taxed at 35%
Lets say I bought a dozen necklaces from my NY supplier at the trade show in Vegas, He is a sole proprietor that imports from the Philippines. Definitely, not a mega corporation—so the 35% corporate tax does not apply.
Now, if his cost for some reason becomes less, will he charge less? No, he will maximize profits, just like I do. Now, his necklaces are pretty darn low anyway, so saying someone will come in cheaper is a misnomer here.
I live in the world of table top capitalism. Pennies do count. If I can not deduct my fuel, my living expenses on the road and the cost of fairs like I currently do, I would not have much at the end of the year.
Now I gotta do paper work for not only the four out of the five states I sell in at fairs, I gotta do FED sales tax too.
If I am wrong here, point it out to me.