10-14-2011, 02:32 PM
BCam wrote:
Cain's plan is in reality a Value Added Tax, isn't it?
I build cars.
I buy steel + 9%.
I buy tires + 9%.
I buy electronics + 9%
I buy upholstery + 9%
I buy glass + 9%
I buy paint + 9%
etc.
So when I sell the car to you, I need to recoup my additional costs, and then of course, you add another 9% to your purchase price.
it is value ADDED tax, you don't pay 9% tax on something you already paid 9% tax on. Nothing is taxed multiple tax, as far as I understand the VAT (again, value ADDED tax)