EconoMeter: How much should the wealthy be taxed?
Mitt Romney's 15% tax rate prompts look at how much is too much -- or too little.
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, February 5, 2012
Kelly Cunningham, National University System
Without reducing capital gains taxes at the same time, further increasing federal income tax rates would be disastrous to the economy. Current U.S. tax rates of 35 percent on corporate income are already among the highest in the world. Additionally taxing capital gains and dividend income actually increases the effective tax rate on investment income above 45 percent. Further raising federal income tax rates would push effective rates beyond 60 percent, without even considering state and local taxes or death taxes. Already a barrier to American growth and competitiveness, this would crush needed investment for struggling U.S. business activity.