[GatorGirl]

Capital Gains are NOT income. That's why Buffett's secretary supposedly pays a higher tax rate than he does.

I guess she'll be voting for Cain.

Here's the evidence, straight from his website which you obviously haven't visited. It's okay, I haven't visited Perry's either.

The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.

Achieves the broadest possible tax base along with the lowest possible rate of 9%.

It ends the Payroll Tax completely – a permanent holiday!

Zero capital gains tax

Ends the Death Tax.

Eliminates double taxation of dividends

Business Flat Tax – 9%

Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.

Empowerment Zones will offer additional deductions for payroll employed in the zone.

Individual Flat Tax – 9%.

Gross income less charitable deductions.

But it won't tax multi-millionaires. There's no way this could be perverted by Congresses to come to only apply to some people. Besides, isn't that what is happening now? So all the status quo candidates are fine with tax increases, too, by your logic.

[DTxAg]

I've visited Cain's 9-9-9 website numerous times. That's how I know, for example, that taxes on corporate payroll INCREASE from 7.65% to 9% under Cain's plan since payroll is no longer a business deduction (unless you're in an empowerment zone).

The IRS does count capital gains as income. For example, the IRS says "The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income." That's why you pay a lower rate on your INCOME tax return.

I read Cain's site as saying there is no separate capital gains tax, there is just a flat income tax. Since income includes capital gains, it's a 9% tax.

And if I'm wrong, just wait until you hear howls from every corner of the country when people realize Wall Street investment bankers now don't have to pay taxes on capital gains they earn paying the stock market.