Obama on Capital Gains Tax: Raise it To '20-25%'

Politico reports on Obama's interview with CNBC’s Maria Bartiromo:

BARTIROMO: How do you plan to change the tax code when it comes to capital gains? How high will that 15 percent rate go?

Sen. OBAMA: Well, you know, I haven't given a firm number. Here's my belief, that we can't go back to some of the, you know, confiscatory rates that existed in the past that distorted sound economics. And I certainly would not go above what existed under Bill Clinton, which was the 28 percent. I would--and my guess would be it would be significantly lower than that. I think that we can have a capital gains rate that is higher than 15 percent. If it--and if it, you know--when I talk to people like Warren Buffet or others and I ask them, you know, what's--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.

Since Warren Buffett believes in tax avoidance (that's why Berkshire Hathaway doesn't pay a dividend)the higher capital gains tax doesn't bother Warren Buffett.