Gibson is an idiot
One of the things that saddened me about the infuriating Democratic debate in Philly last night was that Obama let Gibson off the hook when he repeated the conservative chorus about taxes and government revenue:
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GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.
So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?
OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.
We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year -- $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That's not fair.
And what I want is not oppressive taxation. I want businesses to thrive, and I want people to be rewarded for their success. But what I also want to make sure is that our tax system is fair and that we are able to finance health care for Americans who currently don't have it and that we're able to invest in our infrastructure and invest in our schools.
And you can't do that for free.
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Rather than going with this "fairness" argument which I personally believe has its own merits I would have preferred Obama simply state that Gibson's claim is false. It's a simpler reply and one that is likely to sway independents who may not subscribe to the idea of progressive taxation. Here's a quick read from one of Time's economics bloggers to have handy next time you run into a supply-sider at a cocktail party.
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GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.
So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?
OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.
We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year -- $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That's not fair.
And what I want is not oppressive taxation. I want businesses to thrive, and I want people to be rewarded for their success. But what I also want to make sure is that our tax system is fair and that we are able to finance health care for Americans who currently don't have it and that we're able to invest in our infrastructure and invest in our schools.
And you can't do that for free.
---
Rather than going with this "fairness" argument which I personally believe has its own merits I would have preferred Obama simply state that Gibson's claim is false. It's a simpler reply and one that is likely to sway independents who may not subscribe to the idea of progressive taxation. Here's a quick read from one of Time's economics bloggers to have handy next time you run into a supply-sider at a cocktail party.
posted by dzusa at 6:35 PM
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