Tipsheet

News Flash: Tax Hikes Don't Equal More Revenue

As you may know, the Left is attempting to raise the capital gains tax rate for carried interest from 15 percent to 40 percent.

Michael Knoll of the University of Pennsylvania has a new study, which points out that raising the tax rate will not result in additional revenue for the government (something conservatives have always known about raising taxes). 

As Bloomberg reports:

Knoll's study may be the first comprehensive, nonpartisan mathematical analysis of the fiscal effects of increasing taxes on so-called carried interest. It signals an uphill battle for lawmakers trying to raise the money needed to pay for eliminating the alternative minimum tax for about 23 million mostly middle-income households.

In addition to the alter behavior argument (which is really just another example of liberals counting money that isn’t really there) -- it seems Wall Street is always leap years ahead of the federal government when it comes to tax issues ...