Sunday, 15 April 2012

Buffett Tax will not produce any new revenue

Fairness at a price - less revenue?  Since the Buffett Tax is really a capital gains tax increase from 15% to 30%, it will actually reduce federal tax revenue.  In 1986, we increased the capital gains tax rate from 20% to 28% and the revenue collected went down from $50 billion to $25 billion over the following 5 years.  Conversely, every time we reduced the capital gains tax, revenue went up.  See "The Obama Tax Soup"  WSJ 4/9/2012

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