Edwards would hike capital gains tax

Democratic presidential candidate John Edwards wants to raise the capital gains tax from 15% to 28%, according to published reports. In remarks prepared for delivery this morning in Des Moines, Iowa, Mr. Edwards presented his plan, which would funnel funds collected from the capital gains tax into tax cuts for lower- and middle-income families. Mr. Edwards is also pitching an exemption for each family’s first $250 in interest, capital gains and dividend income; a savings program in which the government would contribute a dollar match of up to $500 for low-income workers; and tripling the Earned Income Tax credit for four million childless adults, plus other measures. The news is bleak for those in the higher income brackets: Not only would private equity and hedge fund execs have higher rates on “carried interest,” but executives will also see a $1-million cap on how much they can defer into their pensions. Mr. Edwards also said he would “declare war on tax havens” by giving the IRS the authority to investigate offshore tax breaks.