It basically only taxes when the cash changes hands via return on labor/wages (income tax), return on capital via interest/dividends/stock buy backs (income and capital gains), or sent overseas (cash exportation tax).
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Because it changes how return on capital is taxed it also requires some changes to the Taxation of Capital Gains. I can go into that but better a different thread.
They key here is if you are generating positive cash flow you are free to reinvest it to grow your business. If you are selling here and exporting cash you will be taxed at the corporate rate. If you are a fair trader then you would have no tax. This provides a market mechanism for fair trade.
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