One of the major tells of The One’s socialism was when he said in that debate that he’d increase the rate, even it it hurt the economyreduced government revenues, out of “fairness.”
4 thoughts on “Don’t Increase Capital Gains Taxes”
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You understate.
He said he would increase the rate (r), even if the total fund taken by the gov (r*I) decreased.
That’s beyond hurting the economy, that’s willing to take a hit on taxes collected in order to be “fair”.
You understate.
You’re right, though, with Barack Obama, it’s easy to do.
Ironically, Clinton and Reagan demonstrated the effects of capital gains tax changes by doing what each other would do. Reagan raised rates in the 1986 tax compromise, and revenues declined from 1988 to 1994. Clinton cut the rate (on Rahm’s advice), and revenues increased every year for the rest of his presidency.
See table 1, the “receipts” figures.
http://www.cbo.gov/doc.cfm?index=3856&type=0
I disagree with abolishing the Capital gains tax. I would propose cutting the corporate tax rate down to the same rate as Capital Gains. This puts productive labor on an equal footing with capital formation. They both should be at about 20% right now and we would have full employment in less than 36 months.