[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.

[Okieshooter]

If the cost of labor is not allowed to be deducted it will make it impossible for a labor intensive business to start up as they may be operating at a loss for at least a year or two and will still be required to pay 9% on their gross. Even when they start to make a profit the 9% could possibly amount to much more than the current 35%. It all depends on what % labor is of their total costs.