Bill Gates said this morning on CNBC that investment gains should be taxed at the same level as ordinary income.
Gates said that he's "pleased" that there is more discussion around changing the tax code.
"There's always been the question of whether taxes on capital should be a lot lower than taxes on labor," Gates said. "I tend to think they should be pretty much the same, and that that's an opportunity to be a bit more progressive."
When asked in the interview whether "the same" translated into lowering ordinary income rates or raising capital gains taxes, Gates said he preferred raising capital gains taxes.
"Well, you have to fund government," he said. "And particularly given the promises that the government's made about medical costs and retirement costs, unfortunately the one that makes the numbers add up is to move the lower tax up higher, although people don't like that. Eventually, the math really matters — otherwise you get into a Puerto Rico-type situation."
What a clown. Notice there is no mention on his part of cutting government expenses.
When it comes to understanding economics and policy, he has a very pedestrian understanding that is mostly ill-informed.
All taxes should be cut, but raising taxes on capital gains is particularly horrific since it cuts into the funds likely to go into more investment, which wich is a the core of creating an increasingly productive society.