Tag Archives: capital gains
An Examination of the Recent History of the Effective Tax Rates of the 400 Highest Income Filers
Part II of a multipart series
Warren Buffett has made a fortune through the shrewd allocation of capital. So far, no one has taken Warren’s million dollar challenge to his fellow dwellers in the penthouse of American wealth. Perhaps that’s because with a performance like this, it hasn’t paid to bet against Buffett. I am sure Buffett knew his proposed bet was likely to be a winning one.
I take a closer look at the data behind Warren Buffett’s challenge in the second installment of this series examining the progressiveness of the federal income tax.
Read on to learn Buffett’s edge and more…
In the wake of the current financial markets meltdown – and the meltdown of his own campaign – John McCain unveiled a set of initiatives aimed at stimulating the economy. The centerpiece of McCain’s proposal is a reduction of the capital gains and dividend tax rate from 15% to 7.5%.
McCain’s chief economic adviser, Douglas Holtz-Eakin described the proposal as being:
“targeted at people who have been hurt by the recent financial crisis — seniors, savers, workers, people who are trying to get to college.”
The Tax Policy Center fired up their computers to crunch some numbers on the McCain dividend and capital gains tax cut. The results are summarized below: