The deeper question in all this is whether capital gains — which are currently taxed at less than half the top rate of ordinary income — should continue to be so lavishly advantaged. The answer there is no. Today’s preferential rate for capital gains is excessive, with no mechanism in the tax code to ensure that it is not overused. Excessively favoring one form of income over another encourages wasteful gamesmanship, creates inequity and crowds out other ways to foster risk-taking. Tackling the too-easy tax terms for private equity is a good way for Congress to begin addressing that bigger issue.
- NY Times editorial
Same old same old. Part of the continuing liberal campaign to raise taxes.
Have these people ever met a tax they did not like?
Monday, April 02, 2007
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2 comments:
Hitting close to home on this one. The "lower" capital gains rate is/was very beneficial to me, but also to the 30 emplyoees and their families that depend on our company being successful.
Private equity creates and maintains jobs and economic growth. Tax it more, get less jobs and opportunity. Very simple law the NYT misses completely.
Tax it too much, many of us will quit. Unless we are "forced" to work, which the NYT would support on the socialist path they are on.
However, if NYT is saying, let's do away with all tax inequities and convert everyone to a flat tax, one size fits all, well I am all for it.
In fact, I don't care all that much what tax rate we start at. Lower the better, but if everyone paid the same rate, the rate would come/stay down.
Liberals are not going to agree to a flat tax rate because liberals use the tax code for their social engineering experiments.
Fairness has nothing to do with it.
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