[mnehring]

That makes even less sense as a VAT is a production level tax on all levels of production of a good. It has nothing to do with VAT also.

It is still a matter of gross versus net. The fact is that the 999 plan replaces income, payroll, and corporate taxes that can eat up over 50% of your pay, be it through income or hidden sales taxes, and replaces it with a clean, out in the open, system.

[cizinec]

Well, let’s see . . .

9% VAT:

Sale 1:
Raw materials: $60
Cost of labor: $20
Sales Price of good or service: $100
Real Income: $20
Taxable Sales Price: $40
Added Tax: $3.60

Sale 2:
Cost of materials: $103.60
Labor to sell: $20
Sales Price of Good or Service: $143.60
Taxable Sales Price: $40
Added Tax: $3.60
Total Tax: $7.20

9% Business Tax via Mr. Cain:

Sale 1:

Raw materials: $60
Cost of labor: $20
Sales Price of good or service: $100
Real Income: $20
Taxable Income: $40
Added Tax: $3.60

Sale 2:
Cost of materials: $100.00
Labor to sell: $20
Sales Price of Good or Service: $140.00
Taxable Sales Price: $40.00
Added Tax: $3.92
Total Tax: $7.20

Notice that the 9% tax in both cases are applied to the cost of labor. The 9% individual tax will *also* be applied to that cost of labor. That is a “hidden” payroll tax that is indicative of a VAT tax.

I’m still on the Cain train, but I’m sitting next to the door so I can get off if I think the train is headed for a town I don’t want to visit.