Posted on 10/18/2011 2:41:08 PM PDT by Def Conservative
I don't think the solution to the deficit lies in the best and fairest method to come up with $3.82 trillion for Congress to spend.
Which candidates are most likely to cut spending, the ones with lots of interests funding their campaigns or the grass roots candidates?
I hear ya. But since Cain's revenue plan comes in about $1.5 trillion light, I'd much rather focus on spending cuts first. Once we have a balanced budget, then we can debate a new revenue plan to pay down the debt.
It's way too tempting for Congress to say 9-9-9 should be implemented at 13-13-13 to avoid increasing the national debt.
Value add includes the cost of labor and overhead.
Gross profit is basically sales minus expenses, which would include physical plant overhead, labor, and materials cost (along with a few other things).
Value Add is basically the sale price of an item, minus the material cost (which would have been a “sale price” to the supplier).
Cain’s plan doesn’t allow business deductions, so the labor and overhead are taxed. That makes the tax apply to the costs of the business in addition to the profits, which is why it is more like a value-add tax.
What we don’t know is whether Cain’s plan allows business deductions for capital costs (things purchased not FOR the product, but to help produce the product). We know he taxes labor and other normally deductable items, but there is not enough detail yet to know whether he left any deductions.
Whoa! With a service company like a law firm, accounting, architects, etc. that's all there is.
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