We believe removing tax deductions that benefit the middle class, such as mortgage interest and employer-provided health insurance, are not sufficient to reduce the deficit but would contribute to the shrinking of the middle class.
The maximum rate of ordinary income tax (paid by people who work) is around 35%. The taxes on investment incomes, including capital gains and dividends, were set during the George W. Bush administration, at a maximum rate of 15%.
This is one of the largest tax loopholes that exist. For the administration to keep its promise to raise taxes on the wealthy while encouraging a strong middle class this is the most important loophole to close.
We ask you to bring the investment income tax rates in line with ordinary income tax to protect the middle class.