At a time when the economy is still recovering from a COVID-induced recession, one would think that the last thing policymakers would want to do is discourage investment. Yet that’s precisely what congressional Democrats might end up doing with a raft of proposed tax hikes on capital gains.
High-profile Democrats such as President Biden and Senate Ways and Means Committee Chairman Ron Wyden have supported a laundry list of tax hikes on investment income, including taxing capital gains and carried interest as ordinary income, ending the step-up in basis, and establishing mark-to-market systems. Any one of these proposals would prove economically harmful — taken together, they are potentially devastating.
Read Full Article »
