Former New York Governor Eliot Spitzer recently participated in a debate on why capital gains should be taxed at a normal 35% rate rather than the going 15% rate. He wrote about his argument on Slate.
Let’s not go over all the reasons why Democrats would want to raise the rate, because it’s pretty obvious. Let’s, instead, go over why Republicans would want to raise it. Spitzer used the modern political philosopher (and forefather of libertarian thinking) Robert Nozick to explain it all in one single paragraph:
When it comes to taxation, even those from the Nozick school can be convinced that a flat tax is the best of the bad alternatives. From their perspective, the tax code should not be used to redistribute—but it also should not be used to discriminate. So here is the pitch to them: Give us a flat tax! Do not discriminate between ordinary earned income and capital gains income: Tax them the same! Bring Mitt’s marginal rate to the same level as that or ordinary income. If both can be prudently lowered through loophole closing, that is fine.
So yeah, flat tax! Probably not exactly what Herman Cain intended, but it’s something like it.