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Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, December 18, 2012

NPR: Why Not Raise Capital Gains Taxes?

NPR LogoNPR, Why Not Raise Capital Gains Taxes?:

As a part of the series, "Why Not," Tell Me More is looking at policies that were once untouchable but now may be on the table. Today, NPR Correspondent Tamara Keith and Emory Law Professor Dorothy Brown dig into the pros-and-cons of raising taxes on capital gains and dividends.

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NPR with a liberal professor from Emory -- now that's a conversation you can trust to say that other people should pay more taxes. Here's what Professor Brown said on capital gains:

...we can talk about why you might have a different rate. One is we want to encourage risk-taking. And when you invest in the stock market, it is a risk. You could actually lose all of your money. ...there could be a part allocable to inflation, and it isn't fair to tax you at a higher rate because inflation is the reason for the additional income that's earned.

So far, so good!

... So I say right now there's discrimination against labor, against wage earners in the code because there's this preferential low rate given to capital gains.

Agrrrrhhhh. So, first we can a rational explanation of why capital gains rates are lower, but then we get a blanket statement with no explanation why that discriminates against wage earners. Give us some rationale for taxing wage earners less. Will lower taxes provide incentives for people to get jobs?

Posted by: Woody | Dec 18, 2012 12:39:45 PM