[DB]

Well we're a sub S corp and don't pay corporate tax, its all all essentially personal taxes. But that isn't the point. In electronics a great many electronic components are made overseas. That just increased our costs on the components by 9% across the board. We export the vast majority of our products so now a good chunk of those materials used in our products cost more, a cost that our competitors overseas don't have to deal with. And if other countries retaliate due to the additional taxation of their products coming into the US by adding import taxes on our products that makes us even less competitive.

Suddenly it may make sense for us to move our manufacturing out of the country, for example Taiwan. All the parts used now bypass the taxman and its origin is no longer the US bypassing other countries retaliatory import fees on US goods. Our product could then ship directly to customers from Taiwan never entering the US.

Sorry, that part of Cain's plan is stupid and will have consequences that are not good.

[BenKenobi]

Ok. Then by far your largest expense is going to be labor and salaries.

What do you currently have to pay in FICA and Medicare taxes? That all goes away.

If that’s 15 percent, then the 15 would be replaced by the 9 for the corporate taxes, and the 9 for the sales taxes. So you’d be about 3 percent down.

How much do the employees make on average? What income tax bracket are they in? Salaries would be cut and would easily make up the other 3 percent, to have you guys run at lower costs. However, your takehome would be greater.