Schiff: Obama's capital gains proposals = 65% effective tax on corporate earnings

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Feb. 23, 2012

Peter Schiff's math: A corporation pays 35% corporate tax on its
earnings, leaving 65 cents on the dollar. Shareholders pay 15% capital
gains tax, leaving about 55 cents on the dollar for the private sector
and 45 cents on the dollar for government. Obama proposes from 15% to
39.6% the capital gains tax, but factoring in the phase out of
deductions it's about 41%. Factoring in the 3.8% surgage for Obamacare,
that's about a 45% tax on the individual level. Factoring in the
preexisting 35% corporate income tax, the government gets to keep 65
cents on the dollar, and the private sector is left w/ 35 cents on the
dollar. (1 x .35 = .35). (1 - .35 = .65). (.65 x .45 = .2925, round up
to about .30). (.65 - .30 = .35 on the dollar for the private sector).
On the day of this show, Obama announced he would like to lower the
corporate income tax from 35% to 28% so if this was passed, the return
on the private sector would be a bit higher than these calculations