Yesterday, the campaign released a powerful ad criticizing eMeg’s pledge to eliminate the capital gains tax if elected.
This would be a terrible idea for a number of reasons. Let’s start with the basics. Capital gains are profits resulting in the sale of non-inventory assets, which include stocks, bonds, and property. A capital gains tax simply taxes those profits.
According to the Franchise Tax Board, in 2008, 92 percent of the capital gains tax was paid by individuals who reported more then $200,000 in taxable income. Read: taxes on really, really rich people. Like eMeg.
Back in 2007, when the economy was chugging along quite smoothly, California collected $10.8 billion in capital gains taxes. Undoubtedly a sizable chunk for the state budget.
As you will see in our ad, economists find eMeg’s proposal extremely flawed. It’s no secret we’re facing a grim $19 billion deficit. Eliminating the capital gains tax would plug up a major source of revenue, thus leading to additional cuts in spending.
Does it really seem fair to kiss your daughter’s middle school arts program goodbye because California’s wealthiest residents think they deserve a tax break?
The plight of the affluent has been part of the political zeitgeist lately; just yesterday the New York Times published an opinion piece by Paul Krugman called “The Angry Rich and Taxes.” eMeg’s stance aims to capitalize on this – and serves as yet another piece of evidence that she is beholden to the interests of her fellow billionaires.
Check out our ad below for more.