Cain’s plan still has income tax, it’s just lower. And there are fewer deductions, so the IRS needs to re-write all their regulations, and re-train the workers, and re-issue all their guidance, and re-do the forms.
And there would still be audits, because people would still cheat on their income taxes. MAybe it would be harder. But there would also be audits of the sales tax portion.
Maybe you are confusing 9-9-9 with the VAT tax. They are a lot alike, but 9-9-9 still has income tax.
Correction...currently my tax return averages 10-12 pages.
With 9-9-9, my tax return will be half page. IRS will save time and money checking my dividends and capital gains/losses because all those become not taxable under Cain’s tax proposal. There will be my gross income, my personal deduction and charity deduction, and that’s it! What is there for IRS to audit? They already get a copy of my W-2. How difficult will be for them to check just 1 item...my charitable contribution deduction?
So no tax lawyers, no turbo tax software, no chance of audits, I love it! Even if you own a business, your tax return will be much simpler because very few deduction are available, so complications are gone. They can deduct any material bought from US corporations in the same year...no need to amortize year after year. And the tax rate drops from 35% to 9%.