alan1
Gold Member
I was thinking about Mr Cain's 9-9-9 tax plan and had a thought jumped into my head (yeah, me thinking is kinda scary).
Two of the 9's.
9% business tax rate.
9% personal tax rate.
So, lets take a small business owner that pays himself a salary from the company he/she owns.
That business owner will pay the exact same rate of tax regardless of the salary he pays himself. He will pay the 9% as an individual if he draws the profit as a salary or pay the same 9% if he leaves the money as profit for the company and pays himself less in salary.
There is no hiding of money or manipulation of tax code to pay a lesser rate based upon differences between personal or business taxes.
It's brilliant.
Two of the 9's.
9% business tax rate.
9% personal tax rate.
So, lets take a small business owner that pays himself a salary from the company he/she owns.
That business owner will pay the exact same rate of tax regardless of the salary he pays himself. He will pay the 9% as an individual if he draws the profit as a salary or pay the same 9% if he leaves the money as profit for the company and pays himself less in salary.
There is no hiding of money or manipulation of tax code to pay a lesser rate based upon differences between personal or business taxes.
It's brilliant.