Increasing the Capital Gains Tax
The federal deficit is projected to be $1.47 trillion and $1.42 trillion over the next two years respectively, both higher than last year's record deficit. According to Resurgent Republic's new survey, voters believe reckless government spending is the primary culprit, even as the economic recovery continues to lag and “lower tax receipts, primarily from capital gains taxes, raised deficit projections for 2011 and 2012.”
Yet by a 56 to 41 percent margin, Democrats favor increasing the capital gains tax rate from 15 to 20 percent. Doing so is more likely to stifle private sector investment and lasting job creation than make up for any revenue shortfall. Beyond budget projections, Democrats are at odds with swing voters on this issue. Independents (62 percent) and Republicans (81
percent) oppose a capital gains tax increase.
This issue could also prove damaging to the left’s political base as nearly 4 of 10 voters who favor a Democrat on the congressional generic ballot oppose raising the capital gains tax.
Instead of Congress taking more resources out of the private sector, voters want to stop the out-of-control government spending. Unfortunately this Congress appears willing to outsource that work to the deficit commission, meanwhile the largest tax increase in the nation’s history looms.
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