“I find it funny, this same author proposed an almost identical corporate tax proposal in 2007.
http://www.cato.org/pubs/articles/edwards-taxnotes-laffer-curve.pdf
He basically makes the argument in that article for Cain’s 9% corporate tax he is now falsely calling a VAT.
The only difference, he is calling for higher rates- 15%.”
Seriously, how bizarre is that!? This raises a lot of suspicion about this guy’s motive
Look at the last line at the source article.. He is pimping for Ron Paul... (and admits he is calling for the same thing,but at 15%).. lol...
the author’s plan is a 15% corporate income tax. His plan doesn’t eliminate business cost deductions, so it is a tax on their net revenue, not on all their sales. That’s what makes Cain’s plan “VAT”-like, that Cain’s plan pretty much taxes ever bit of the value added by a business.
As an example, Cain’s plan taxes the money business pays to employees. That is deducted under the existing tax code. Of course, business pays the payroll tax on that money, about 7.65%.
But under the Cain plan, business pays 9%. That’s a higher tax on the employee income than before. Those who think business will pass the “payroll tax savings” to the employees obviously didn’t know that the corporations are getting taxed 9% on the employee wages, so they’ll actually LOWER the wages they pay by 1.5%.
9-9-9 needs to be fully debated, sent through committees, amended, and improved. But Cain doesnt’ want that. He wants the supercommittee to pass it next month, so the congress has to give it a straight up-or-down vote with no amendments and no committee debate or input.