Norquist: Don't Hike the Capital Gains Tax

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Posted by Natalie De Vincenzi on Thursday, June 30th, 2016, 11:10 AM PERMALINK

Writing for the Huffington Post, ATR President Grover Norquist denounced efforts to hike the capital gains tax in any tax reform plan.

Instead, the capital gains tax ought to be reduced or repealed. It taxes income that has already been taxed when it was earned so it has the effect of discouraging investment and economic growth. 

As Norquist points out, big government liberals have tried to raise the capital gains tax again and again and again. He notes: 

“Their long-term policy goal is higher taxes, with ALL capital gains taxed as ordinary income, and for that rate to be very high. Sometimes they deride the capital gains tax as a “loophole” that needs to be closed. Other times they see raising it in increments as the best way to achieve their long-term policy goal of higher taxes. Regardless of the proposal, the end game is the same.”

President Obama has twice-raised the capital gains tax. He initially raised it by 5 percent, raising the rate from 15 to 20 percent, and then through an additional 3.8 percent Obamacare “surtax”. A Clinton presidency would continue this work, as Norquist warns:

“Hillary Clinton would only perpetuate Obama’s misguided effort. Already she has called for a byzantine capital gains tax with six brackets for those whose taxable income puts them in the 39.6 percent bracket.”

Raising the capital gains tax would be a huge mistake. It should be common-sense to end this double taxation.

Photo Credit: Chris Potter

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