The Senate's Proposed Investment-Tax Hike Is a Flop
The provision is strange on the surface, and stranger yet underneath.
Who ever thought that a bill that increases investment taxes would have been sponsored by Republicans?
Such is currently the case. In the Senate, Republicans introduced a provision to the Tax Cuts and Jobs Act, previously passed by the House of Representatives, that would boost taxes on realized investment gains. The proposed raise is implicit, in that it affects how those gains are measured rather than the rate that is applied to them, but a tax hike is a tax hike. This would be a tax hike.
John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.