<p>News sources are atwitter with the rumor that Hillary Clinton proclaimed she would be &ldquo;raising taxes on the middle class&rdquo; &ndash; a stark contradiction to her former promises to provide &ldquo;tax relief&rdquo; to the hardworking middle class.  ;</p>
<p>This is what Hillary Clinton said on August 1st at a rally in Omaha, Nebraska:</p>
<p>&ldquo;While Warren [Buffet] is standing up for a fairer tax code, Trump wants to cut taxes for the super-rich. Well, we&rsquo;re not going there my friends. I&rsquo;m telling you right now we&rsquo;re going to write fairer rules for the middle class and we <strong>aren&rsquo;t</strong> going to raise taxes on the middle class!&rdquo; ;</p>
<p>Despite the audience&rsquo;s positive response to her words, many are convinced that Hillary said &ldquo;are gong to raise taxes on the middle class.&rdquo; You can listen to her words in the video link below, but I&rsquo;m fairly certain I heard the word &ldquo;aren&rsquo;t.&rdquo; ;</p>
<p>Many of those who are convinced she said &ldquo;are going to raise taxes&rdquo; are calling Hillary&rsquo;s words a &ldquo;slip of the tongue,&rdquo; which makes sense considering the fact that Hillary has repeatedly promised to make sure &ldquo;the wealthiest Americans and large corporations pay their fair share.&rdquo; ;</p>
<p>Hillary&rsquo;s failure to enunciate wasn&rsquo;t the only problem with her Omaha speech. ;No comments were made regarding the 45% of Americans who pay no federal income tax. ;To be more precise, in 2014, roughly 53% of all federal income taxes were paid by those earning at least $250,000.</p>
<p>Hillary failed to discuss any limiting principles as to how much of GDP should be made up of government spending. She also failed to mention an upper limit for taxation. ;</p>
<p>In the wake of Hillary&#8217;s misleading speech, <em>The ;Wall Street Journal&#8217;s</em> James Freeman sat down with WSJ Assistant Editorial Page Editor Paul Gigot to make some sense out of Hillary&rsquo;s tax plan:</p>
<p>Hillary&rsquo;s main criticism here is that investors and businesses are not thinking long-term. They are &ldquo;dominated by short-termism,&rdquo; says Freeman. &ldquo;Her new plan is basically to encourage investors to hold on to investments longer via the changes in the capital gains tax rate.&rdquo;</p>
<p>That&rsquo;s because &ldquo;she&rsquo;s going to raise the capital gains tax rate,&rdquo; explains Gigot. &ldquo;You already pay regular income rates if you hold it for less than one year. If you hold it for more than one year you get a preferential rate. And the reason we have a preferential rate down to now 24% &#8211; so it&rsquo;s not that preferential&hellip;is because we double tax corporate income.&#8221;</p>
<p>&#8220;So if you raise the tax on capital, you lower the return on capital which means less profit for the companies and typically lower wages. So she&rsquo;s basically saying, &#8216;I want to tax increase another tax increase, adding on to the one that Barrack Obama gave us.'&#8221; ;</p>