This has to be one of dumbest policies you can imagine. While Obama has no understanding of economics it turns out Charlie Gibson does:
But Mr. Obama has also said he’s open to raising – indeed, nearly doubling to 28% – the current top capital gains tax rate of 15%, which would in fact be a tax hike on some 100 million Americans who own stock, including millions of people who fit Mr. Obama’s definition of middle class.
Mr. Gibson dared to point out this inconsistency, which regularly goes unmentioned in Mr. Obama’s fawning press coverage. But Mr. Gibson also probed a little deeper, asking the candidate why he wants to increase the capital gains tax when history shows that a higher rate brings in less revenue.
“Bill Clinton in 1997 signed legislation that dropped the capital gains tax to 20%,” said Mr. Gibson. “And George Bush has taken it down to 15%. And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28%, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?”
Mr. Obama answered by citing rich hedge fund managers. Raising the capital gains tax is necessary, he said, “to make sure . . . that our tax system is fair and that we are able to finance health care for Americans who currently don’t have it and that we’re able to invest in our infrastructure and invest in our schools. And you can’t do that for free.”
But Mr. Gibson had noted that higher rates yield less revenue. So the news anchor tried again: “But history shows that when you drop the capital gains tax, the revenues go up?” Mr. Obama responded that this “might happen or it might not. It depends on what’s happening on Wall Street and how business is going.” And then he went on a riff about John McCain and the housing market.
Mr. Obama taking money from everyone.
First, he said he would raise taxes on those people making over $200,000, but a large, if not majority of Americans, have a vested in interest in the stock market than they did 20 years ago.
So, when you raise the capital gains tax, you are taxing EVERYBODY in the stock market.
But, then again, Mr. Obama probably thinks only the rich invest in the market.
As noted in this interview http://www.cnbc.com/id/23832520/, I don’t think Obama is interested in raising the cap gains tax to 28%. However, He is willing to put it at 15-25% with some kind of relief for people of “middle class” income. How he plans on doing this, I don’t know. Perhaps a tax credit on income tax? Frankly, I don’t think he’ll be able to get away with raising it above 20% when he becomes President.
Thanks for the CNBC interview link. I see your point, but I also note that Obama zigged and zagged so much in the interview that it really isn’t clear if he has a position. However, his voting record as most liberal senator is very clear. So far as I can tell he has never met a tax, a tariff, a subsidy, or a new spending program that he doesn’t like.
I’m reading between the lines, but in the CNBC interview I had the strong impression that Obama is trying to figure out just how much the government can tax out of the economy before the voters rebel.
I almost got fooled by this jerk. I’m glad that I kept reading. This guy has got to go, he’s just a snake in the grass.