LAMBRO: Obama’s tax-rate demagoguery

Threat to raise capital-gains tax targets middle class

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Mr. Clinton never mentions his capital-gains tax cut in his speeches about his stewardship of the economy or in his latest book about how to grow the Obama economy and create jobs.

President George W. Bush, too, cut the capital-gains tax in his 2003 tax reform, reducing it to 15 percent. Between 2002 and 2005, capital gains reported as income shot up by 154 percent.

“Capital gains tax receipts also far outpaced the [tax] revenues that the government’s static models predicted. Between 2003 and 2007, actual tax receipts exceeded expectations as income,” writes Stephen Moore, a tax-cut crusader on the Wall Street Journal’s editorial board.

Despite all the evidence that a low capital-gains tax rate boosts economic growth and raises tax revenue, Mr. Obama is stubbornly sticking to his failed class-warfare economics and wants the capital-gains rate raised to 20 percent or higher.

Newt Gingrich is proposing that the tax on dividends and interest be eliminated - a good idea, but its stands no chance of passing Congress.

Mr. Romney is playing it safer. He wants to make the Bush individual tax cuts permanent, reduce the corporate rate to 25 percent, but eliminate the capital-gains tax for people making less than $200,000 a year.

People in the upper six- and seven-figure tax brackets are doing OK in this economy, he says, but those in the middle-class brackets need to be encouraged to save and invest more.

In one stroke of his agenda pen, Mr. Romney robs Mr. Obama of the issue he craves most: to attack him as being out of touch with lower-income Americans, favoring the rich over the middle class.

It’s going to be politically difficult for the president to say Mr. Romney favors the rich when he calls for cutting taxes on Americans earning below $200,000, the very middle-class income bracket Mr. Obama says he wants to protect from higher taxes.

Donald Lambro is a syndicated columnist and former chief political correspondent for The Washington Times.

© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.

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