Often lost in the discussion of capital gain taxes is the rationale behind them. Lower capital gain rates were instituted to minimize the impact of progressive tax rates on income generated over the years but not recognized until the investment was disposed which unfairly pushed the taxpayer into a higher rate. Income averaging was also instituted for the same reason. A flat tax would eliminate the need for lower capital gain taxes.
Steve Forbes!!
If we had reporters, not repeaters, every story on the “Buffett Rule” would explain these fundamentals. They’re critical to understanding the context.