In a speech today, Democratic presidential front-runner Hillary Clinton struck-out at "short-termism" and "quarterly capitalism" in proposing to hike capital gains taxes on a sliding scale for investors who hold investments for six-years or less.
In doing so, she not only betrayed the nearly genetic pre-disposition of any Democratic politician to raise taxes on anything that isn't nailed down, but also demonstrated a terrible ignorance of tax policy, economic incentives, and the forces that drive economic inequality.
Mrs. Clinton's bright idea was to suggest that the capital gains tax rate should increase on top earners who hold assets over short-term periods from the current rate of 23.8% to 28%.
In high-tax states like New York and California, where these taxpayers already pay a combined federal and state capital gains rate of nearly 40%, this would increase the government's take to nearly 45%.
Forget about "short-termism" – this would be out-and-out government confiscation!
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Prominent money manager. Has built top-ranked credit and hedge funds, managed billions for institutional and high-net-worth clients. 29-year career.