Barack Obama has made one part of his plan for the capital gains tax perfectly clear: He wants to raise the rate above 15% for high-income investors.
But to what level: 20%? 23%? 27%? All Obama has said is that it would be at least 20% and less than 28%.
The choice the presumptive Democratic nominee for president makes will matter to investors and to federal coffers. It's one of the many crucial tax details he and his advisers have yet to settle as they campaign against Republican rival John McCain.
One reason Obama says he wants to raise the rate is to establish more fairness in the tax system. A low rate directly benefits high-income taxpayers the most since they hold more taxable investments than everyone else.
Yet Obama is also banking on revenue from a higher capital gains rate to help pay for some of his proposals, such as new tax cuts for less-than-flush families and a system to make health insurance affordable for all.
"What I want is not oppressive taxation. I want businesses to thrive," he said in a Democratic presidential debate this spring.
