The Obama Tax Hike Machete
By Matt Hawes
CEI’s John Berlau examines the specific impact of one of President Obama’s latest proposals in a piece for The American Spectator.
The individual with the “carried interest” is taxed at the rates of ordinary income for his or her everyday salary and for much of the business’s activities. But these partners pay the individual capital gains rate when the other partners receive capital gains for sales of such assets as stock and real estate. The president’s budget would drastically change this, taxing these gains as ordinary income and subjecting them to payroll taxes. This would more than triple the rate of taxation in many cases….
Once more, individuals are going to be hit hard because of someone’s “grand idea” in Washington. This is what happens when your philosophy of government is based on what you can take from people, not how you can secure their freedoms so they can work toward a prosperous future.
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