Kyl Kudos
It’s reassuring to know that there are pro-growth allies like Senator Jon Kyl (R-AZ) on the debt Super Committee making the important case of keeping low tax rates on capital gains and dividends. From BNA Daily Tax Report:
Senator Jon Kyl (R-AZ), a committee member took issue with proposals in both the Bowles-Simpson plan and the Domenici-Rivlin plan to tax capital gains and dividends at the same rates as labor is taxed. “My observation is you could do great harm by effectively doubling capital gains and dividend taxes because those represent areas of capital formation and investment in our economy.”
Indeed, great harm could come from raising tax rates on savings and investment as I pointed out today as a panelist on National Journal’s Policy Summit on tax reform.
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"...to marshal more venture capital for more new industries -- the kind of efforts that begin with a couple of partners setting out to create and develop a new product -- we intend to lower the maximum capital gains tax rate."
"The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital from static to more dynamic situations, the ease or difficulty experienced in new ventures in obtaining capital, and thereby the strength and potential for growth of the economy."