Tags: Hillary Clinton | capital | gains | tax

WSJ: Clinton Would Double Capital Gains Tax on Short-Term Holdings

Friday, 24 July 2015 11:55 AM

Democratic presidential candidate Hillary Clinton will propose nearly doubling the U.S. capital gains tax rate on short-term investments to 39.6 percent, the Wall Street Journal reported Friday.

A Clinton campaign official said the plan would affect investments held between one and two years, which are currently taxed at a 20 percent capital gains rate, the newspaper reported.

Clinton, the front-runner for the Democratic Party's nomination in the November 2016 election, will outline her plan in a speech Friday in New York that will highlight how corporate efforts to boost stock prices in the short term undercut longer-term economic growth and hurt American workers.

Top-bracket single earners with taxable income higher than $413,201 and married couples filing jointly with income above $484,850 would be affected, the newspaper reported.

The campaign official, who was not identified, said the plan would not change the capital gains rate for lower-income taxpayers, the journal said.

The plan would not count an extra 3.8 percent tax on net investment income included as part of the federal healthcare law, it said.

News of Clinton's proposal added pressure to U.S. stocks, which were already drifting lower after disappointing corporate earnings and a drop in commodities prices. The S&P 500 moved to the day's low following the report.

Clinton, a former New York senator and U.S. secretary of state, will use her speech to decry what she calls "quarterly capitalism", according to her campaign.

A central argument of her economic platform is that the tax code and U.S. laws currently allow or even encourage companies to focus on short-term gains in stock prices in a way that undercuts the economy's long-term growth and harms middle-class incomes.

Clinton will also say U.S. tax laws that typically apply to executives' incomes, much of which often come in form of stock and capital gains, also discourages long-term investment, her campaign said in an email to reporters on Thursday.

She was critical of generous executive pay packages during her last attempt to win the presidency in 2008, when she also ran on a platform seen to be to the left of the more centrist economic policies of her husband, Bill Clinton, when he was president.

Clinton also will say companies need to be more transparent about the use of stock buybacks, which can temporarily boost a company's share price, and that disclosing them in bulk at the end of every quarter was not enough, the campaign said.

© 2019 Thomson/Reuters. All rights reserved.

   
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Democratic presidential candidate Hillary Clinton will propose nearly doubling the U.S. capital gains tax rate on short-term investments to 39.6 percent, the Wall Street Journal reported Friday.
Hillary Clinton, capital, gains, tax
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2015-55-24
Friday, 24 July 2015 11:55 AM
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