10-14-2011, 02:43 PM
space-time wrote:
[quote=BCam]
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)
There is no double taxation occurring. If the manufacturer's costs go up because their taxes increase, then the price of the final product will also go up. And you pay more in sales tax when you buy it.