This nation employs several methods for taxing capital income, both at the individual and the corporate level.  There is a massive economic literature that documents strong theoretical and empirical support for the United States to reduce its capital taxes

The "Buffett Rule's" stated goal of making millionaires pay the same tax rates as the middle class is appealing. Unfortunately, the proposal is based on inaccurate claims about the tax system and its enactment would penalize the investment that fuels long-run economic growth.

The following is a summary highlighting testimony by AEI Director of Economic Policy Studies Kevin Hassett to the Joint Economic Committee at a hearing entitled "How the Taxation of Capital Affects Growth and Employment."

Despite the significant revenue it raises, the taxation of corporate capital gains has received far less attention than the taxation of individual capital gains. How does the taxation of corporate capital gains affect investment, sales of business property, and other economic decisions? How do other countries tax corporate capital gains?...

Alan D. Viard, a resident scholar at AEI, reviews the budget outlook, the need for tax reform and the benefits of moving to a progressive consumption tax. He also discusses his forthcoming book, Progressive Consumption Taxation: The X Tax Revisited, which he coauthored with Robert Carroll of Ernst & Young. The book will be published by AEI Press in the Spring.

The one thing on which our political leaders seem to agree is the need for corporate tax reform. But amid all of the promising rhetoric there is significant cause for concern. Many proposals, particularly those of Messrs. Obama and Santorum, seem to have unlearned many of the lessons of modern economics.

Corporate capital gains deserve a closer look.

Fundamental tax reform is the best step the government could take now to promote job growth and employment because it offers three key benefits.