Unfortunately many of our lawmakers belong to the class of people who pay the carried interest tax rate for most of their income, so would it be in their economic self-interest to not change those rates and moreover, their campaign war chests depend on keeping their benefactors happy and since the richest of the rich earn all of their money on capital gains and carried interest, that is also a huge incentive to keep things as they are. What is surprising is that the well to do who get hit with the Alternate Minimum Tax don’t fight back harder against their much wealthier brethren, because the successful ones who earn between 300k and 1 million pay much more than the likes of Mitt Romney and I would argue that is grossly unfair, there is a big difference between 30% to 35% and only 15%. If the theory behind the low tax rates for capital gains and carried interest is that it encourages investment, than why don’t we see the economy much more improved through these millions and millions of dollars not paid to the government in tax revenue, but are theoretically reinvested in our economy? Why has our economy not grown? Isn’t that the principal argument against raising these rates? I don’t see the results that we have been promised. I see a lot of hysterical GOP lawmakers deflecting criticism by yelling “socialism” and “class warfare” and that is about it.
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