Wall Street Journal Editorial Board
In response to the editorial board article in today’s Wall Street Journal titled Obama’s Capital Loss, we are commenting that raising the Federal Capital Gains tax from 15% to 25% would have a negative affect and cause even more California property stagnation than is already occuring. Take a look:
One has to go no further than California (9.3%) when combined with Federal (15%) to see the stagnation created by increased taxes. In addition, we have Prop 13 to lock-in residence and Commercial property owners. Increasing Capital Gains would totally lock-up Real Estate here in California. Prop 13 is a political hot potato – So, local politicians won’t touch it. And, they don’t understand the interactions of the tax code. I don’t think Mr. Buffett is right on this one.