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Democrats And Their Billionaires

DEMOCRATS AND THEIR BILLIONAIRES....There are all sorts of arguments in favor of low taxes. Supply siders say that high marginal income tax rates reduce people's incentive to work. Liberals complain that payroll taxes are regressive. Capital gains taxes inhibit investment. Taxes on dividends are double taxation. Cigarette taxes punish the poor. Etc.

But allowing management fees for hedge funds to be taxed at capital gains rates (15%) instead of the normal income tax rate (35%)? That's a no-brainer. All the fast talk in the world can't produce even a colorable argument in favor of letting this insane loophole continue, and no one but the hackiest of Grover Norquist's tax jihad hacks should be willing to defend it.

So fixing this loophole ought to sail through Congress, right? Maybe a dozen of the most barefaced dead-enders will vote against it, but even most Republicans will realize that it's indefensible and join with Democrats to get rid of it quickly and cleanly. No muss, no fuss, shouldn't take more than a few hours of time. Right?

Wrong.