Under the Cain plan, labor costs are taxed (are not deductable for purposes of determining net income). He explains that this is part of how he lowers the tax rate, by taxing a lot more of the money a company gets.
So, a company no longer would avoid taxes by hiring more people, removing that incentive, as opposed to a capital investment in a robot that can take an employee’s job, which I think will be deductable.
Although since Cain actually does NOT have a detailed plan, or even much of a plan at all, I’m not sure what exactly is taxed and not taxed under the Cain tax proposal, except what he tells us from time to time.
“Although since Cain actually does NOT have a detailed plan, or even much of a plan at all, I’m not sure what exactly is taxed and not taxed under the Cain tax proposal, except what he tells us from time to time.”
Actually he has the only plan that throws out the present status quo plan of failure and replaces it.
The 999 plan is dominating the political conversation and Cain now leads Romney in most national polls and in several state polls, including Iowa.