or you have decided for wahtever reason to participate in the same double talk Cain has been doing in trying to defend his disastrous 999 plan.

Cain’s so-called “hidden” taxes that he claims everyone is currently paying have nothing to do with the manufacturing and sale of goods to consumers. It is a bogus, and very misleading argument.

Capital gains taxes are paid on the profit from the sale of things such as real estate, stocks, bonds, etc. If I own a property, and I bought it for $100,000., and I sell it now for $150,000., I owe capital gains taxes on the $50,000 profit I made from that sale.
If I own stocks that I paid $50,000. to purchase, and I sell them today for $75,000., I pay capital gains taxes on the $25,000. profit I made from that sale. If I made a profit on the sale of a property, and I reinvest those monies into another property, I don’t pay capital gains taxes now. How in the hel1 does that have anything to do with a bakery baking loaves of bread, and then selling them to a grocery store for a small profit per loaf? Under the current tax code, the bakery can purchase their flour, sugar, butter, and whatever it takes to make that loaf of bread tax free, with a Tax exemption certificate. The baker currently does not pay taxes on the goods required to produce their product, but, with the Cain plan, now every item required to produce that loaf of bread will be taxable, which will increase the cost of a loaf of bread. What ever does that have to do with a “hidden” capital gains tax, or the death tax. Death taxes are paid on the value of someone’s estate when they croak, with an exemption for the first few hundred thousand dollars.

Now, if I am the owner of a major bakery, and I have 5 bakery shops that sell my product, and I decide to close down and sell one of those shops, and I sell the property for $25,000 more than I originally paid for it, with Cain’s plan, I will no longer owe the capital gains tax on that $25,000. profit, which has absolutely nothing to do with the manufacture and sale of my bakery products. I will now be required to pay taxes on every item, considered cost of goods sold, that I didn’t have to pay pre-999. I promise those tax increases will be passed along by an increase in cost of every item I sell.

Go back and consider the items that are required to make flour. The flour maker will be paying taxes for every item required to produce a bag of flour. The same applies for the sugar manufacturer, the butter manufacturer and everyone who produces every and any product.

Cain is falsely and dangerously using his “double speak” in saying that there are currently “hidden” taxes being paid now by business owners, and then naming taxes that have little, to nothing, to do with producing items for sale.

If I am a senior, and I am surviving on SS only, I now have an additional 9% national sales tax, added to my state sales tax rate, on every product I buy, from any store, other than Goodwill or a consignment shop. Last I checked you can’t buy used medications or food.

Yesterday when Cain was talking with David Gregory, Gregory asked him about the increased costs for the elderly. Cain talked as though every senior citizen was wealthy, was collecting dividends, or had major capital gains income. He completely ignored the fact that there are many many elderly that are barely making ends meet. It was though he assumed that every senior was rich.

The current tax code must be reformed, changed, or thrown out and started over, however, to make a change from one faulty system to another faulty system is not a worthy goal, and should be shunned in full. I am quite certain that there are highly qualified economists that can simplify the tax system without creating additional tax revenue streams, and therefore exchanging one nightmare for another.

Please stop with the Laffer and Club for Growth support memes. There have always been some willing to give up any credibility they may have earned in order to push an agenda, whatever it is.

First off, to say that no one is even talking about the Capital Gains taxes etc. is a lie. Cain himself named them yesterday as the “hidden” taxes when he was interviewed by Gregory. I’m not trying to muddy the waters, you and Cain are, by using faulty arguments to detract from the real problems with the plan. It is deflection of the first order.

No one has argued that business taxes are not included in the pricing of items. So again, a corporation paying 35% in business taxes, under Cain will now pay 9% business tax, and in many cases on a higher bottom line, because they will not have the business writeoffs they currently do. Less allowable expenses, more profits, higher tax liabilities, higher costs for their products. They will also be paying a 9% national sales tax on every item they buy to make their product, which until now they have not paid, as it is part of the cost of goods required to make the product. I promise you, the 9% national sales tax on items will cost far more than the current 35% tax, with allowable business expense deductions. The cost of every product made will now increase.

Tax exemption certificates don’t exist for things like bread, unless you are in a very specific industry such as a major food chain or restaurant. Burger King would currently get a tax exemption on their buns, as they hold the Whopper together, and are necessary to make that sandwich. They exist for every item that must be purchased in order to produce that loaf of bread, or whatever inventory item you buy. You have no knowledge about Tax Exemption certificates, how they work, and what their purpose is, and you just proved that. You have proven that you are arguing for something that you have no clear understanding or knowledge of.

Again, you don’t have a clue. By writing what you do, you are only helping to turn people off from 999, as if any excuse was needed.