[loucon]

He's right about the plan not allowing employers to deduct employee compensation (this was not at first clear to me from the bullet points on Cain's web site).

Point to a Cain source that says that employee payroll will not be allowed to be deducted as business expense for the corporation, otherwise it's pure BS and you are a stirrer of it!

[Meet the New Boss]

Point to a Cain source that says that employee payroll will not be allowed to be deducted as business expense for the corporation, otherwise it's pure BS and you are a stirrer of it!

Cain himself acknowledges this:

Claim 5: The business tax represents a new tax on labor. Response: Paul Krugman of the New York Times makes this claim because we do not allow businesses to deduct the cost of labor from their taxable revenue. But the claim is bogus for several reasons. First, we are reducing the corporate tax rate from 35 percent to 9 percent, so the tradeoff is a much lower rate paid on more of a company’s income. Second, we treat capital and labor the same, both with the corporate tax and with the income tax. That is fair and neutral. What’s more, the current system taxes both capital investment by business and capital gains by individuals. That’s a double tax, and the 9-9-9 plan eliminates it.

BTW, I am in favor of the 9-9-9 plan because it will dramatically change incentives in favor of job creation and savings and broadens the base to ensure that more Americans have skin in the game.