Sen. Bernie Moreno Had the Perfect Response to CNN Host's Questions About Trump's...
Pentagon Watchdog Launches 'Signalgate' Investigation Into Pete Hegseth
United Kingdom Weighs Striking Back Against US Tariffs, and It's Asking Businesses for...
A Quick History of American Tariffs: The Good, the Bad, and the Ugly
'Designed for Battle' Isn't a Valid Argument for Gun Control
Have They Even Read the Second Amendment?
Kamala Harris Did More Than Just Endorse New WI Supreme Court Justice
Trump Weighs In on Proxy Voting Proposal, and It Looks Like There May...
Bernie Sanders Once More Tries, Fails Miserably to Get His Anti-Israel Resolutions Passed
Is AOC Really the Democratic Party's Leader? Here's What These Polls Say.
Senate Votes on Confirming Dr. Oz for Role in Trump Administration
We Will Hold Rogue Judges Accountable, Rep. Gill Says
Will the Liberal Media Cover This Horrific Crime Story?
Surprise: The 'Pro-Palestinian' Mob Has Nothing to Say About Hamas Murdering Palestinians
Pro-Hamas Mob Hits New Low With Latest Attack on Fetterman
OPINION

Obama Capital Gains Tax Proposal

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.

President Obama’s economic policies always seem to be a zero-sum proposition with winners and losers. Usually the losers are all Americans, who suffer from slower economic growth.

Advertisement

The president’s new tax proposals are a case in point. One damaging item is a proposal to raise the top federal capital gains tax rate from 24 percent to 28 percent. That would come on top of his previous increase from 15 percent.

Despite what the president and his political advisors may think, low capital gains tax rates are not some sort of unjustified loophole. We’ve had reduced rates virtually the entire time we have had an income tax, and for very good reasons. Low capital gains tax rates are crucially important for spurring entrepreneurship, investment, and growth.

Recognizing that, nearly every other high-income nation has a reduced capital gains tax rate. The average top long-term rate in the 34 Organization for Economic Cooperation and Development nations is just 18 percent, according to Tax Foundation. By contrast, the U.S. rate (including state taxes) would jump to 32 percent under the Obama plan—far higher than the rate in most other nations.

For more, see my op-ed in Daily Caller today.

Wonk note: Data is from Tax Foundation and my Cato study. Unlike TF, I did not include the effect of the limitation of itemized deductions, which slightly increases the effective rate.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement