Monday, March 16, 2015

Will Hillary Clinton Follow Democrats on Capital Gains?

http://www.nytimes.com/2015/03/14/upshot/will-hillary-clinton-follow-democrats-on-capital-gains.html?ref=economy&abt=0002&abg=1

"In a debate in April of that year, Mrs. Clinton said she would not raise the capital gains rate above 20 percent “if I raised it at all.” At the time, the top rate was 15 percent, as a result of the Bush tax cuts. Ms. Clinton’s position was in line with the economic policies of Bill Clinton’s administration, which called for much higher tax rates on wage income than capital income for high earners. In 1997, Mr. Clinton signed a law that cut the top capital gains tax rate from 28 percent to 20; in 1993, he had raised the top tax rate on ordinary income from 31 percent to 39.6 percent, and imposed aMedicare tax on high earners that effectively pushed their top tax rates above 40." ..."Economists tend to advocate lower taxes on capital on the grounds that investors are more likely to be driven away by high taxes than workers are, and because much capital income is subjected to corporate income tax before the capital gains tax is applied."

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