Strangling American Capitalism with the Zuckerberg Tax

When American progressives go to bed at night, do they dream of new ways to raise taxes?  The latest tax incarnation from America's left was floated in a February 8 New York Times op-ed entitled "The Zuckerberg Tax."  Under this scheme, new taxes would be imposed on the mark-to-market values of publicly traded companies.  The new tax would apply only to America's "ultra-wealthy," defined in the article as the top 0.1% --those "individuals and married couples who earn, say, more than $2.2 million in income, or own $5.7 million or more in publicly traded securities."  In particular, the long-term capital gains rate (currently 15%, but slated to rise to 20% next year) would be applied to all increases in the market value of equity securities held.  As a result, if the market value of the Microsoft stock held by Bill Gates rose by $1 billion during a calendar year, he would pay at least an additional $150 million in taxes, even though no real gain had been...(Read Full Article)