President Barack Obama proposed raising the rates on capital gains and dividends from 23.8% to 28% for high-income households in Tuesday’s State of the Union speech. Fox News contributor Charles Krauthammer offered his thoughts on the president’s proposal on Special Report with Bret Baier.
“Obama was asked about whether raising the capital gains tax is something he would support even — this was a famous question asked by Charlie Gibson in the run-up to the ’08 campaign — even if it lowered revenues, which it does, which of course is totally illogical. You raise taxes to bring in revenue. Obama’s answer, a famous answer, was, yes, in the name of fairness. This is a man who wants to punish the rich regardless of its effect on the economy.”
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“If it were to help the economy, I would be in favor of it, but it’s going to have exactly the opposite effect.”
The most common capital gains are the profits from when an investor sells the capital asset for a price that is higher than the purchase price. Capital assets include a home, stocks, and bonds.
h/t: Legal Insurrection
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