Abolish the Capital Gains Tax (Third in a Series)

Unfair to everyone, the capital gains tax hits poor and middle class Americans hardest.

by Rod D. Martin
March 4, 2004

In my ongoing series on making real tax reform a reality, I have noted that there are five key reforms which must take place before a completely new system can be enacted. Successful navigation of this “road map to reform” will improve fairness while preparing the system for an entirely new tax code; it will also teach average Americans -- and their legislators -- the lessons needed to guide them toward the best possible change.

Item one on the agenda: elimination of the double tax on capital gains.

Unfair to everyone, the capital gains tax hits poor and middle class Americans hardest: any time you sell an investment -- whether it’s your home, your small business, or something you set aside for a rainy day, Uncle Sam takes a bite, which can range as high as the very top tax rate.

Double taxation is wrong, and this is surely it. You’ve already been taxed on your income: now, when you save or invest it, Washington picks your pocket again. How can anyone not alr…