Why The Capital Gains Rate Should Be Zero
Dan Mitchell, a senior fellow at the Cato Institute, explains in a video released on Monday by the Center for Freedom and Prosperity Foundation (CF&P) “why the capital gains tax is inconsistent with good tax policy and hurts the American economy.” The video, “Six Reasons Why the Capital Gains Tax Should Be Abolished,” lasts 6 minutes, 44 seconds.
According to the CF&P press release, Mitchell says, “The capital gains is double taxation and has a harmful effect on competitiveness . . . "It is not even indexed for for inflation. And people wonder why Americans do not save and invest enough." The executive summary of the mini-documentary says:
“The correct capital gains tax rate is zero because there should be no double taxation of income that is saved and invested. This is why all pro-growth tax reform plans, such as the flat tax and national sales tax, eliminate the capital gains tax. Unfortunately, the President wants to boost the official capital gains tax rate to 20 percent, and that is in addition to the higher tax rate on capital gains included in the government-run healthcare legislation.”
Watch this fine video, and others from CF&P, on You Tube, Yahoo, or the Capitol Hub.