Ike: The latest weapon to fight Obama’s Buffett tax

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Politics,Paul Bedard,Washington Secrets

 

Missouri Republican Sen. Roy Blunt has stumbled onto a new weapon to fight President Obama’s so-called Buffett rule where those making over $1 million would have to pay a 30 income tax even if their money came from capital gains, now taxed at 15 percent. Its the new and celebrated biography of Ike by Jean Edward Smith, “Eisenhower in War and Peace.”

In speeches and briefings (scroll to 4:30 in the above YouTube), Blunt has been bragging on a section of the book that talks tax policy and the fact that under Ike the top income tax rate was 90 percent but the capital gains was just 25 percent. That bolsters his claim that the nation has never pushed high taxes on investments, which the Buffett tax would, he added.

“We have never believed at any time that you treat invest income like you treat other income,” Blunt told Secrets. “Even when the top rate in the country was 90 percent, nobody thought that the capital gains rate should be even a third of that because they knew people would not invest money if there was no return.”