The federal tax rate on capital gains is 15%, and we’re told by those who oppose raising it that keeping the rate low will spur investment, which will create jobs. Today on KTRS/St. Louis, I talked with David Abromowitz (senior fellow at the Center For American Progress, who checked out that theory using Mitt Romney’s years at Bain Capital. He found that, even though the capital gains rate was higher (Reagan made it 28%), plenty of profits and investment dollars still flowed.
Also worth your time: my earlier column on The Job Creation Myth