You are leaving out the reduction of business income tax from 35% to 9%. Businesses don’t pay it. It is passed on to customers. So it effectively is a sales tax. It is just hidden. The way Washington likes it.
Reduction of business taxes will make American built products cheaper for foreigners as well as Americans. American manufacturing will surge. So will jobs and pay.
So will Cain pass a law saying that the 26% reduction in the business tax must result in a 26% reduction in the price companies will charge? Otherwise how can you guarantee that the consumer will see the benefits of the tax reduction?
Case in point. Two years ago, the company I work for implemented an across the board wage cut of from 5% to 15% depending on your job category. The company did not cut the prices it charged to its customers because of that. Those prices remained the same. Those reductions in expenses went to the corporate bottom line - which was already in the black, by the way, just not enough in the black to satisfy management. So why should anyone believe that reducing corporate taxes will be any different? Like any other reduction in expenses, why wouldn't the company keep the money and use it for it's own purposes? Maybe it'll use it to expand or hire, which are good things. Maybe it will use the money to increase profits and stock prices. Maybe it will pay down debt or purchase its own stock. But why should it use the windfall to cut prices? Claiming that businesses will automatically do that means that you believe there is a certain level of profits that corporations are entitled to, and anything over that point should be returned to the customer in the form of lower prices. I defy you to find corporate CEOs who would agree with that.