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Democratic Debate: Obama and Clinton both Struggle to Understand Tax Rate vs Tax Revenue…

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Democratic Debate - April 16, 2008

In a telling moment during the Democratic Debate in Philadelphia yesterday, April 16, 2008, both Barack Obama and Hillary Clinton appeared to fail to understand the difference between a tax rate and tax revenue.

The moment came about an hour and five minutes into the debate: both Democratic candidates have discussed raising the Capital Gains Tax from it’s current 15% rate. The moderator pointed out that the RATE decreased from 28% to 20% under Bill Clinton, and again from 20% to 15% under George Bush, however in both these cases, REVENUE to the government derived from this tax INCREASED. When the rate was previously increased to 28%, revenues DECLINED. He went on to ask, first Mr. Obama, then Mrs. Clinton, if they would still be willing to raise the tax rate, despite overwhelming evidence increases in the tax rate lead to LESS revenue. Read the rest of this entry »

Written by westcoastsuccess

April 17, 2008 at 11:07 am