Mauimom commented on the blog post Corporate Tax Reform Dropped Into Fiscal Slope Negotiations
Since we’re marinating in the stew of “tax reform,” I’d appreciate your thoughts, DDay on the following:
1) what would be the fiscal effect of changing the “carried interest” rule that hedge fund folks use to get their earnings taxed at capital gains rates [i.e., how much revenue would that produce?]; and
2) what would be the fiscal effect of imposing a “financial transactions tax,” one specifically designed to curb casino-like flash trading? [Again, revenue produced??]
Next question: are there ways of achieving these “tax changes” other than having them originate in the House, as usually required for such matters? Of course we can’t expect Obama to propose anything like this — it would piss off his buddies and reduce his money-making opportunities after he leaves office. But someone???? Somewhere????
Final question: even though the rich boys would be packing the halls of Congress to oppose such moves, I’d think framing these issues in the right way could generate support. “Kick the rich bankers/hedge fund folks’ asses” enjoys support on both sides of the political divide.