Monday, June 26, 2006

Ohio GA Contemplating Capital Gains Tax Break

As reported in Saturday's Columbus Dispatch. A Saturday story generally means a Friday announcement (though what prompted the CD report isn't made clear). Announcing on Friday is a well-worn tactic for flying something under the radar. While the CD writes that this is part of a coordinated election-year campaign, this is the part Republicans don't necessarily want in the face of the voting public.

Even apologists for cap gains tax cuts admit that they go disproportionately to the wealthy. In a year when the Republicans are trying to hold on to votes despite a feeble state economy and make inroads with urban Blacks, cutting taxes for the wealthy is unlikely to be a big sell.

I have further thoughts on the wisdom of the policy and some quirks in the CD article but I have to roll out, so it will wait. In the meantime, here's a policy paper from the Institute on Taxation and Economic Policy to get us started.

Read and discuss.