Anyone else notice the comments made on NPR by David Stockman, Reagan's director of the Office of Management and Budget, regarding the current 15% long-term capital gains rate?
"It's an obsolete provision that originated in the 1970s when we had double-digit inflation," David Stockman tells weekends on All Things Considered host Guy Raz. Stockman, the budget director under Ronald Reagan, supported the capital-gains measure at the time as a congressman from Michigan. "With double-digit inflation," he says, "you were taxing phantom gains."
The U.S. hasn't suffered from that kind of inflation in 30 years. Since then, the low capital gains tax has become a huge windfall for the rich."