Tax Hike Scorecard
31st July 2007
This is why you need to subscribe to the online edition of the Wall Street Journal. Highlights:
New York Senator Chuck Schumer tells the New York Times that he’ll oppose this unless the tax increase also applies to real estate and other partnerships that also now pay the 15% carried interest tax rate. To put it another way, Mr. Schumer is saying he’ll only support the higher tax rate if it applies to more people. Meanwhile, by playing this “good cop” role, Mr. Schumer is raising millions of dollars in campaign contributions from hedge funds and private equity for Democratic Senate candidates running in 2008. Brilliant.
An excellent illustration of why the scorpion stung the turtle.
Deny the domestic manufacturing deduction to oil producers. This is part of the Senate Finance Committee’s energy bill and is estimated to raise $11.4 billion over 10 years. How this will increase domestic oil production amid $77 a barrel oil and widespread clamor for “energy independence” is one of those mysteries that Congress prefers not to explain.
Perhaps because there’s no sane explanation.