Championship Socialism: Hillary Clinton to Propose ‘Behavior Modification’ TaxationPosted: July 24, 2015
Doubling Capital Gains Tax Rate on Short-Term Investments: Campaign officials have said that their goal is not to address income inequality or to raise money for the federal treasury, but to ‘change investor behavior’.
Under the Clinton plan, investments held between one and two years would be taxed at the normal income-tax rate of 39.6%, nearly double the existing 20% capital gains rate. Neither figure counts an extra 3.8% tax on net investment income included as part of the health-care law, a campaign official said.
MSM handling bad news about Hillary like… pic.twitter.com/Wqj7CCoJXY
— Matt (@Matthops82) July 24, 2015
The campaign isn’t proposing any changes to the capital gains rate for lower-income taxpayers. The change would affect top-bracket single filers with taxable income above $413,201 and married couples filing jointly with taxable income above $484,850.
The rate for top-bracket taxpayers would be set on a sliding scale, with the lowest rate applied to investments held the longest. To qualify for the existing 20% rate, one would have to hold an investment for at least six years.
Mrs. Clinton will lay out the plan in a speech Friday in New York City, where she plans to spotlight what she sees as unhealthy corporate efforts to boost stock prices. She will argue that a focus on short-term results is undercutting longer-term economic growth and hurting American workers.
Capital gains recap, since 1997: Bill: CUT 28% to 20% W: CUT 20% to 15% O: HIKE 15% to 23.8% Hillary (proposed): HIKE 23.8% to 43.4%
— Phil Kerpen (@kerpen) July 24, 2015
Mrs. Clinton will also endorse a $15 per hour minimum wage proposal for fast-food workers in New York, a campaign official said. Asked about this on Thursday, she hedged as to whether the minimum wage should be that high nationally but said certain cities can justify higher minimums. “I do recognize that the cost of living in Little Rock is different than the cost of living in Manhattan,” she told reporters. Asked if $15 per hour is justified in New York, she said, “That’s up to local leaders in New York. They certainly believe it is.”
The campaign said she would also call for greater disclosure of stock buybacks by companies, saying that while they may give a quick lift to stock prices, they often come at the expense of research and development spending. She will also call for a review of securities rules related to shareholder activism and rules governing tax treatment of executive compensation.
The capital-gains tax changes are the centerpiece of her proposal. Campaign officials have said that their goal is not to address income inequality or to raise money for the federal treasury, but to change investor behavior.
Under existing law, investments held for less than a year are already taxed at normal income-tax rates, and that wouldn’t change under the Clinton plan.
But her plan would affect taxes for the top-tier taxpayers who hold investments for anywhere between two and six years. For instance….(read more)
Write to Laura Meckler at email@example.com
- Hillary Clinton to propose increasing capital gains taxes as part of 2016 campaign plans (canadianbusiness.com)
- Hillary Clinton to Call For the Raising of Some Capital Gains Taxes (time.com)
- Thankfully, Obama’s Dumb Capital Gains Plan Is Going Nowhere (dailycaller.com)
- Krauthammer’s Take: Obama ‘Wants to Punish the Rich Regardless of Effect on Economy’ (nationalreview.com)
- SO MAYBE REPUBLICANS SHOULD ACTUALLY PASS THESE OBAMA TAX PROPOSALS: Americans like to hear that … (pjmedia.com)
- Obama wants to double your capital gains taxes (legalinsurrection.com)
- Dems in denial (powerlineblog.com)
- Hillary’s campaign focused on bringing down Wall Street by accepting as much of their money as possible (michellemalkin.com)
- Lame Duck Obama Gets Old-time Left-Wing Religion (powerlineblog.com)
- Capital Gains Tax Cut Unleashes Egypt’s Stock Market (legalinsurrection.com)