If those numbers are correct, the highest possible gain he could have made is 5%. He probably made much less. You really think we should end tax exemption for municipal bonds?
This article is ridiculous.
True, range would be from 1.5% to 5.0% tax-free. However, what is more interesting is his choice of putting the bulk of assets into virtually risk-free tax-free municipal bond account as opposed to regular non-tax-beneficial account is very telling, as that also separates it from lumping regular interest income together with earnings income which may have either put him into higher bracket or would reduce the bulk of interest income overall on the after-tax basis.
Also, goes to show that raising marginal income tax on richest will not do diddley squat to raise the revenue to the treasury as the super-rich do not have to take income in unfavorable years or take them as ordinary income (hence, $1 a year salaries etc.) - that is only for show and exercising power and control of government micromanagement, while creating more hurdles and making it more difficult for middle class to grow richer.
I’m just making a point that folks who want to tax other people’s investments ought to invest in taxables investments themselves.
Barak has a problem with rich folks keeping too much of their dollars. Maybe he’ll feel differently if tax proposals include his favorite investments.