EconoMeter looks at Hillary Clinton’s idea
Q: Should the capital gains tax rate be raised to discourage short-term investing, as Hillary Clinton suggests
Bob’s Answer: NO
Instead of focusing on capital gains tax rates alone, Hillary Clinton and all of the presidential candidates should focus on a wholesale reform to the tax code. Clinton’s proposal would increase the top rate for capital gains taxes by over 80 percent and would essentially penalize investors who help create capital “flow.” This will stifle economic growth when investors are forced to hold an investment solely to avoid high taxes.