My monthly post is intended to focus on local real estate development and economic development; however, this week I'd like to take a look at the national stage and relate it to local development.  If you know me or follow me on any social networking sites, you are probably well aware that I am highly supportive of Herman Cain for the upcoming Presidential vacancy.  If you have yet to investigate Herman's platform, or if you only listen to (and believe) the media and have no facts, here is why I believe that he will have the most positive effect on local jobs, the local economy, and local development.



Herman Cain's 9-9-9 plan is very simple:  do away with the current tax code and implement a 9% personal income tax, 9% corporate tax, and a 9% national sales tax.  Having a simple tax code in place will give business owners the one thing they have been missing for years: certainty.  Certainty allows a business to plan for the future without worrying about what the government might do to throw a wrench into their future plans (ie. Obamacare).  Certainty will allow local real estate developers to take on risk to build more subdivisions, redevelop additional downtown sites, and improve access to convenience shopping.  Job creators will have certainty so they can grow and hire additional workers.



Entrepreneurs with talent will feel more confident in their decision to pursue a new business venture or market a new product/invention.  In a community like ours, job growth would explode and innovation would be rampant.  Those who make good money would have more money available to donate to local charitable causes.  Those who are unhappy with their economic position would have the opportunity to move up and earn success.  Our community would be highly impacted by a president with Herman Cain's common sense background.



How else would a president like Herman Cain positively effect local development?  His 9-9-9 plan does away with the capital gains tax.  For those of you who are unaware of what capital gains tax does; simply put, it punishes Americans for making a smart investment in real estate, capital, or stock in a company.  For example, a local developer owns an office building that he bought 20 years ago.  In 20 years, the property has almost doubled in value.  He would like to sell the building and develop a new shopping center or apartment complex with the proceeds.  What holds him back is capital gains tax.  He is forced to pay as much as 35% of the increase in the value of the office building.  Doing so wipes out so much of his profit that he is now not motivated to pursue the new development.  I see situations like this on a daily basis.



I'm not expecting everyone who reads this post to become a believer in Herman Cain.  However, I do hope that you consider how your vote in 2012 will effect our local economy.  Our State has done everything in its power to destroy our State's economy; the last thing we need is more poor decision making in Washington.