January 30, 2012
In a piece that supported imposing a Buffet-rule type tax on the wealthy, Robert Samuelson explained the growing income share of the 1 percent in part on the booming stock market. He told readers:
“From 1980 to 2000, stocks rose almost tenfold; from 2000 to 2007, the gain was about 40 percent.”
While the first part is roughly correct, the S&P 500 rose by just 3.5 percent from 2000 to 2007. According to his source, it averaged 1427.22 in 2000. Its average close in 2007 was 1477.19.
It’s good to see Samuelson get the story straight that a higher capital gains tax will not hurt growth. (The Buffet rule would effectively raise the capital gains tax rate.) But he could make his arguments better if he got his numbers right.
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