you know VAT isn’t anything like a Sales Tax, right?
VAT is paid through every level of the economy for ever value add to a process.
Sales Tax is only on its final consumption by the consumer.
The VAT angle comes up not because of Cain’s sales tax, but because his corporate tax is based on
“Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports.”
That is, corporations cannot deduct the cost of labor when figuring their taxable income. It’s that aspect that makes Cain’s corporate tax like a VAT.
However, the analyses I’ve seen (including Bachmann’s disengenuous remarks last night), neglect to mention that the ~8% that corporations currently pay on labor through payroll taxes are eliminated in Cain’s proposal.
See #5. What is the problem??