The Buffett Rule: 5 Things You Need to Know
The Senate recently rejected “The Buffett Rule.” However, Senate leaders and President Obama pledge to continue to make it a defining political issue this election season. Economic research has long shown that tax hikes on savings and investment can have adverse impacts on entrepreneurship, job and economic growth and U.S. competitiveness. Here are 5 important things to know:
- Higher taxes on capital gains impacts state budgets. A new ACCF Special Report finds that higher federal rates, combined with state and capital gains taxes may reduce state’s budget receipts as well as overall investment and job growth.
- Higher taxes on capital gains impacts our economic recovery and job growth.
- Higher taxes on capital gains impacts entrepreneurship.
- Higher taxes on capital gains makes the U.S. less competitive compared to other countries.
- Can history repeat itself? President Carter’s proposed capital gains tax hike was reversed into a dramatic tax cut by bipartisan members of Congress in 1978 and ushered in pro-growth tax policy of the 1980s. Can it happen again today?