National Review Online: Punishing Investment
Among the bad provisions that the reconciliation bill would add to the law — special deals, an increase in the employer tax per uncovered worker from $750 to $2,000, a federal takeover of the student-loan industry — is an assault on the burgeoning investor class: a new 3.8 percent Medicare tax on capital gains and dividends. Between this and the hike that was already slated to come at the end of this year, the tax on investment income (which applies to single filers making $200,000 or more and married filers making $250,000 or more) will jump from 15 percent today to 23.8 percent in 2013 if the reconciliation bill passes.
We’ve already seen the economic reality of the Democrats’ health care reform bill manifest itself in expected hundred-plus million dollar losses at Caterpiller and John Deere, and a staggering projected loss of $1 billion by AT&T, but there’s a whole lot more trouble to go around.
This National Review piece is by Phil Kerpen. It’s all about how the increase in capital gains taxes will stifle growth and prosperity. And it’s a must-read.