I never saw rent as 9% taxable in everything I have read about 9-9-9. Am I wrong?
Rent is not taxable under the plan, used goods are not taxable, it has been estimated that only thirty percent of what a low income person spends would actually be subject to the sales tax. In fact if Peter Schiff is right Cain should drop the retail sales tax because the income it produces would be relatively insignificant.
“But unlike our current corporate tax system, the plan eliminates the deductibility of wages and salaries from corporate income. The net effect is the creation of a brand new 9% tax on wages.”
Say it ain’t so! I like 9-9-9 in general, though I would much prefer 9-9 (abolish income tax entirely).
But this little detail would also mean taxing corporations even when they are in a breakeven or loss situation after wage & salary deduction, like many if not most startups are, so it would serve as a barrier to entry in favor of established firms and against new competition.
Wages & salaries are hardly exotic, improper deductions from revenue to arrive at income. If a corporation is not making money, it should not be taxed at all. A tax should be on profit not revenue for Heaven’s sake. Incredible.