Raising capital gains tax isn't such a good plan
Editor, Times-Dispatch:
Before everyone jumps on the political bandwagon to increase capital gains taxes to "punish" Mitt Romney, I suggest that they sit back, take a deep breath and think about it for a few minutes.
If you are currently working and planning for retirement you are probably investing in an IRA with the contributions going into various mutual funds. Hopefully, the funds will be profitable and the profits will roll over to purchase more shares of the fund and your IRA will grow so that when you retire it will supplement Social Security. That growth is capital gains. If you are already retired and supplementing Social Security with income from your investments a portion of that is due to capital gains.
The question then becomes: Do you really, really want a higher tax rate on those capital gains? Of course, you could move all of your investments to Tax Exempt bonds which would eliminate your tax burden but would deprive business from the capital it needs to grow. That would result in slower business expansion and employment.
So ignore the political rhetoric and relax and think about what you really want.
Alan Machenburg.
Chesterfield.
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