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Sunday, October 16, 2011

Twenty-Seven?

Good morning, Agim. I hope that you, and all of your readers, enjoy the item I just posted on my Knight's Castle blog. It's linked to the title of this piece, or you can get it here.

It's a short piece, and pretty sketchy, so I thought I'd use this space to expand upon one point.

Herman Cain claims that his "9-9-9" proposal is simple, transparent, and neutral. There is one big exception to the apparent simplicity and transparency. Cain's plan leaves capital gains completely out of the mix. 9% across the board, with no exemptions or deductions for personal income; 9% for corporate tax, without loopholes or exception; a 9% national sales tax, without exceptions for food or medicine; but 0% for income derived from speculation and the profitable sale of assets.

I don't buy the argument that some forms of income should be privileged, particularly when capital gains benefit primarily people who don't need more benefits.

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