Obama: Huge Capital Gains Tax Increase Needed

Monday, March 31, 2008 2:01 p.m. EDT

Citing advice from the sage of Omaha, Warren Buffet, Democratic presidential contender Sen. Barack Obama (Ill.) has called for a massive increase in the capital gains tax.

No word from the billionaire investor Buffett in reaction to Obama’s policy proposal — aired first on MSNBC by the Democratic presidential contender in an interview with Maria Bariromo – but many other investors are already responding. Currently, the capital gains tax rate is 15 percent.

"When I talk to people like Warren Buffet, or others, and I ask them, you know, how much of a difference is it going to be if it’s 20 or 25 percent, they say, ‘Look, if it’s within that range then it’s not going to distort, I think, economic decision making,â€