In “Relief from Taxmageddon” (Commentary, June 20), Emily Miller made a point that cannot be repeated often enough: Combined with the tax increases included in the Obama health care plan, allowing tax rates to ratchet up from 2001 levels would result in a historic overall tax increase.
One of the most significant increases would be a dramatic hike in the rate of the capital gains tax, which is paid by individuals and corporations on the profits realized when a capital asset is sold for a gain.
The current U.S. rate is lower than rates in just nine of the 25 major economies in the world, according to a report by Ernst & Young. After the scheduled increase, the United States will have a lower tax than just six of those countries.
With the U.S. economy still struggling to crawl out of the economic downturn, it’s important to avoid policies that hinder capital formation and investment in U.S. markets, as raising capital gains tax rates would do.
MATTHEW GLANS
Senior policy analyst
Heartland Institute
Chicago
Matthew Glans joined the staff of The Heartland Institute in November 2007 as legislative specialist for insurance and finance.
