Raising Capital Gains Taxes Is the Fair Move
After decades of spiraling income inequality, higher levies on appreciating assets won't hurt anybody who can't afford it.
Raising capital gains taxes is about standing up for what’s fair.
Photographer: Angela Weiss/AFP via Getty Images
President Joe Biden wants to raise the capital gains tax, especially on top earners. This is a good idea, and long overdue. Arguments that a higher tax will lead to a dearth of business investment are misplaced and overblown.
Biden has been launching a blizzard of expensive spending plans. Many of those can be handled with deficits, but permanent ongoing spending items, like Biden’s child allowance, should be matched with new taxes. The key is to select types of new taxes that won’t derail the economy or put a substantial drag on growth going forward.