Currently the capital gains tax rate is only fifteen percent. Since capital gains taxes are mostly only paid by the upper and middle class the taxable rate should not be lower than what many of the working poor currently pay. Raising the capital gains tax rate will also provide the goverment with much needed revenue.
The single largest problem with income disparity is caused by the low capital gains taxed. A large segment of Americans live paycheck to paycheck and cannot even afford to invest in the markets. The current set up encourages investment from the wealthy. That sounds like it should be a good thing but in reality it is a problem. The reason is that the wealthiest hold significant advantages in company shares and thus companies make decisions more and more out of touch with the average worker. The stock monopoly is the single greatest reason trickle down economics doesn't work. The capital gains rate fans the flames rather than evening out the playing field.
Yes,there should be a higher capital gains tax.The current system seems to penalize those who work for a living and rewards those who just happen to be the recipient of a lot of capital gains.While everyone should have to pay a certain amount of taxes,it should be more equitable where middle and lower class workers are not penalized
People can be surprisingly short-sighted on the benefits a society reaps from the fact that people will take the extra money they have and send it to allow others to build a better business, create more jobs, and develop better products. If you make it harder to make money on particular investments, then there will be fewer jobs and less overall prosperity. Nor can one achieve the dream of "sticking it" to the rich by taxing capital gains as they move their investments elsewhere.
No, I do not think that they need to raise the taxes on capital gains. I think that the public outcry over this would be so bad that it would make the government have to take the tax and get rid of it, since people do not want to pay.