ABC's Charlie Gibson did a heck of a job advancing the supply-side ball during last night's Democratic debate. Gibson laid out clear evidence showing that whenever the capital gains rate has been cut in the past 20 years, revenues have shot up, while the one time the rate was raised - surprise, surprise - revenues headed south. Gibson then confronted Obama with his promise to essentially double the capital gains rate if he were elected president.
Obama didn't budge. The reality that a lower cap gains rate brings in more government tax revenue didn’t faze him one bit. Apparently, nor does the fact that raising the cap gains rate diminishes jobs, enervates capital formation, and leads to lousy economic growth. Obama's response and sole concern remains sticking it to rich people, like hedge fund managers.
Someone ought to point out to Sen. Obama that of the 8.5 million tax filers who declared capital gains in 2005, 79 percent had incomes under $100,000. 79 percent! The unfortunate fact is that Wall Street won't be the only one hard hit by Obama's populism, Main Street would be hit even harder.
***FYI: John Podhoretz thinks Charlie Gibson turned into yours truly...