Even Mayor de Blasio, who hasn’t announced any intentions to make a run at the White House in 2016, is lecturing people in other states about income inequality throughout America.
Democratic politicians have become delusional, disingenuous or just flat-out dishonest with their Pinocchio-like tale: That an increase in taxes on hedge funds and private-equity firms would help fight income and social inequality.
First off, let’s set the record straight — since the numbers are all over the place — using President Obama’s own figures from the Congressional Budget Office. The entire tax gain from raising the capital gains rate on hedge funds, which currently ranges from 15 percent to 39.5 percent depending on how long a position is held, might over 10 years raise $20 billion on a Federal budget of $3.34 trillion.
Compare that with the lobbying group the Motion Picture Association of America, which over the last 85 years has been quite successful getting tax credits for films.
In New York, there is the Empire State Film Production Tax Credit, enacted in 2004, that gives a 30 percent tax break to Hollywood producers, movie studios and stars to a tune of $420 million annually.