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More than one-fifth of all income for the top 1 percent of earners in America comes from capital gains, according to estimates by the Congressional Budget Office.

Its really not an issue of billionaires sit on piles of cash, of idle money that the government should take, said Gabriel Zucman, an economist at the University of California, Berkeley. Its really an issue of you have people who have capacity to pay a lot of taxes and the way to get them to pay more is by taxing capital.

The need for more tax revenue is clear to many Democrats who want to fund government programs meant to help the poor and the middle class, including universal child care, paid leave, early-childhood education and free college.

But the United States taxes income from capital gains at a lower rate than it taxes income from jobs. Orthodox free-market economists argue that comparatively lower taxes on capital gains stimulate investment, and conservatives warn that raising those taxes would hamper economic growth.

Right now, one of the biggest problems we have is low investment even with low interest rates, said Karl Smith, vice president for federal policy at the Tax Foundation in Washington, a think tank that tends to support lower taxes on businesses and capital gains. In general, taxing capital or productive assets is going to make that problem even worse.

Mr. Biden and Mr. Sanders favor raising the tax rate for capital gains, such as profit on the sale of a stock or a business, to the same rate as taxes on labor income. Mr. Bidens increases would be smaller, and apply to fewer Americans, than Mr. Sanderss.

Currently, married taxpayers earning up to just under $80,000 a year pay no taxes on capital gains from assets held longer than a year. The top rate, for those earning just under $500,000 a year, is 23.8 percent, compared with a top rate of 37 percent for labor income.

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How Democrats Would Raise Taxes on the Rich - The New York Times

ANALYSIS/OPINION:

You dont ever want a crisis to go to waste. Its an opportunity to do things that you would otherwise avoid.

So said former Chicago Mayor Rahm Emanuel, who was President Obamas chief of staff and an astute practitioner of smashmouth politics.

Its worth remembering this as the Democrats and their media do everything they can to hype the dangers of the Wuhan coronavirus. Not that it isnt deadly serious. It is. People are contracting it and dying, all over the world, and it has cratered the U.S. economy.

But here are three items you wont hear much about: Only a handful of children in China have contracted the virus. Factories are reopening and hospitals are closing in Wuhan, where the virus was centered. And in South Korea, the epidemic appears to be leveling off amid mass testing, with the fatality rate for deaths from infections less than 1 percent.

The Wuhan virus, re-dubbed COVID-19 by the World Health Organization, was first identified in December. The Communist government covered it up at first, quarantined the city and then confined 60 million people before the virus began leveling off in March.

Now, Communist Chinas Internet trolls are accusing anyone who uses the term Wuhan virus or Chinese virus as xenophobic. A Chinese military portal is claiming that the virus is a biochemical weapon developed by the United States to target China. The Communist Party is spreading the idea that the virus was brought over to China by U.S. military personnel in October.

This is reminiscent of when the Soviet Union spread the rumor that the CIA had created the AIDS virus.

The Wuhan label has been around since the story broke, as documented by the Media Research Center, which compiled a montage of dozens of journalists using the phrase.

On Thursday, Joe Biden accused President Trump and anyone else who calls it the Wuhan virus as xenophobic. Pretty soon, Joe will accuse people of being anti-ornithology for using the term bird flu.

The first case of Wuhan coronavirus in the United States was reported on Jan. 21, and the Trump administration issued a mandatory 14-day quarantine for anyone coming into the country from Chinas Hubei province. On Jan. 31, the Trump administration announced tighter travel restrictions.

That same day, Mr. Biden told a crowd in Iowa: This is no time for Donald Trumps record of hysteria and xenophobia hysterical xenophobia and fearmongering to lead the way instead of science. A few days later, he railed against reactionary travel bans, saying they would worsen the problem. No one in the press corps seemed curious as to how letting in fewer infected people would worsen an epidemic.

Conversely, in their Feb. 4 letter to HHS Secretary Alex M. Azar II, Reps. Nita Lowey, New York Democrat, and Rose L. DeLauro, Connecticut Democrat, praised the administration for declaring a public health emergency and requested more funds for several activities, including mandatory quarantine of travelers and enhanced screening at ports of entry. What a couple of xenophobes.

Other Democrats, however, followed Mr. Bidens lead and unloaded on Mr. Trump. Rep. Eliot L. Engel (New York) called travel bans imposed by the United States and other countries, racist and discriminatory.

On March 5, Sen. Bernie Sanders took to the pages of USA Today to accuse Mr. Trump of being incompetent, political and reckless. Unlike himself, a mild-mannered communist.

No matter what Mr. Trump does, he will be accused of 1) reacting recklessly; 2) reacting too slowly; 3) being racist; 4) ignoring medical advice; and 4) treating the health crisis as a partisan issue.

The left has two good reasons to gin up hysteria. They think theyve finally found a silver bullet to take down President Trump, and they have an opportunity to create permanent government expansion through emergency legislation.

The same kind of folks who concocted the 2,000-page Obamacare legislation behind closed doors will slip Democratic socialist wish-list items into any emergency legislation.

One of them is mandatory paid leave, which might sound good in an emergency, but could become a permanent dictate to businesses with 15 or more employees. Pro-business groups have opposed it for years as a job-killing measure. Crisis, meet opportunity.

Any delay in ramming through the legislation will afford Democrats a chance to do what they do best accuse opponents of lacking compassion. And racism. Always, racism.

Sometimes, youre deemed awful even if youve uttered nothing offensive.

On Thursday, The Washington Post ran a five-column photo and feature article about first lady Melania Trump addressing the National PTA Legislative Conference about online bullying. Be best not to mention it? was the snarky headline. The writer complained that Mrs. Trump had discussed her topic without referencing the coronavirus. The runover page headline was: First ladys talking points dont include covid-19.

Could you imagine The Post giving Michelle Obama the same treatment?

If Mrs. Trump had said anything about the virus, they would have seized on it and ripped her up one side and down the other. She cant win.

Its all part of mining the crisis for political gold, which may well turn out to be fools gold before this is over.

Robert Knight is a contributor to The Washington Times. His website is roberthknight.com.

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Democrats and liberal media trying to use coronavirus to bring down President Trump - Washington Times

DES MOINES After Iowas Democratic caucuses melted down into a long night of technology glitches and error-riddled results, Laura Hubka, the chairwoman of the Howard County Democrats, got up the next morning and faced the aftermath at the grocery store.

The Democrats she met in the aisles of her local Fareway were edgy: How had it gone so wrong? And, more important, what did this mean for November?

Aside from hoping to beat President Trump in a state he captured from Democrats in 2016, Iowa Democrats are trying to hold on to two newly won congressional seats and unseat a Republican senator. And now conservatives were crowing: If Iowas Democrats could not even run their own first-in-the-nation caucus, what shot did they have at their bigger election-year goals?

Its not been an easy week, Ms. Hubka said. Im just kind of tired.

A week after the caucus fiasco, the hangover lives on. Iowa Democratic Party leaders are still mired in questions about their leadership and the accuracy of the caucus results as the campaigns of Senator Bernie Sanders of Vermont and Pete Buttigieg, the former mayor of South Bend, Ind., asked for reviews of dozens of precincts.

In an instantly symbolic moment on Monday, Troy Price, the state Democratic chairman, was speaking at a news conference in Des Moines when the partys logo fell off his lectern and clunked to the floor.

Until last week, Democrats were hopeful about their recovering fortunes in Iowa, which has been a bellwether in the last three presidential elections. In 2018, they won two of the states four congressional seats from Republicans.

But in a state where Democrats say they are also fairly accustomed to disappointing election nights, some said last weeks debacle would not dampen their enthusiasm this fall. They were motivated to vote by far more urgent issues, such as protecting their Medicaid coverage, struggling crop prices and the toll of the administrations trade war on farmers.

Ill still vote, said Becci West, who manages a pizzeria in Marshalltown and has a 13-month-old daughter. She was one of the last mothers to deliver her baby before the local hospital shut down its obstetrics ward. Health care is important to me.

Four years ago, Ms. West said, she voted Libertarian when Marshall County swung by 18 points into Mr. Trumps column. Two years after that, in the midterms, the county was part of a Democratic surge that unseated a two-term Republican congressman and elected Abby Finkenauer, a Democrat who stressed her rural roots and familys union ties. Now, like so many counties spreading east from Des Moines to the Mississippi River, it is a jump ball.

Democrats across Iowa said they worried the caucus turmoil would amplify the problems of a disappointing turnout. The caucuses were attended by 176,000 people, about 3 percent more than those who showed up in 2016, and far less than the 300,000 some campaigns had prepared for.

In some rural precincts, volunteers were distressed that only 15 or 20 people showed up to school gyms and civic-center basements where twice that many had come in past years.

I do fear that people who came on Monday will never caucus again, said Debra Zupke, who volunteered to run her tiny precinct caucus in Scott County, in eastern Iowa. Who tried to become involved and were turned off by what happened. But I do think there is a good core of people who are energized.

In Marshalltown, Kristal Acevedo De Bogue, 30, caucused for the first time last Monday, supporting Mr. Sanders, who won the county. Afterward, she said she grew increasingly suspicious of the entire process as she tracked the halting release of results that have been revised and corrected and re-examined again and again.

It did make me a little leery of the whole thing, Ms. Acevedo said. I dont have a lot of confidence in the results.

In West Des Moines, Judy Zobel was ready to dump the caucuses she helped to run.

I feel so unengaged now, she said.

She said she received no training in how to use the faulty results-reporting app, and then gave up trying to phone in her precincts results to a jammed-up hotline. She ended up driving them over to a local Democratic collection point.

I think the best thing in the world is just to do away with the caucuses, she said. Take a vote and have a paper backup.

But several rural Democrats said they were troubled by the idea of moving the first contest of the presidential primaries out of Iowa.

Yes, they acknowledged, the caucuses can feel like an anachronism: complicated, time-consuming, exclusionary to anyone who cannot afford child care or a missed shift.

But they said losing a monthslong parade of candidates who stream through tiny towns to talk farm-country issues could be a death blow for rural Democrats, who are still struggling to convert anti-Trump sentiment into local election wins in places where the president remains popular.

Several Democrats said they were frustrated by the partys response up and down the line and impatient for an independent investigation to explain the cascading problems. One county chairman has called on the state and national leaders to resign.

In Tama County, Dave Degner, a truck driver and county Democratic chairman running for State Senate, was less concerned about any long-term damage when the country seemed to have such a short-term memory.

Were living in an era where therell be another scandal, another tweet, something thats going to have everybody wound up, he said. And the caucuses? Just another blip in the news cycle that nobodys going to remember.

Michael Wines contributed reporting.

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Can Iowas Democrats Rebound From the Caucus Fiasco? - The New York Times

NASHUA, N.H. - Bernie Sanders may have established himself as the standard-bearer for the Democratic Partys leftist wing with his strong showing in Iowa and New Hampshire, but for moderates looking to rally around a candidate to fend him off, the picture just got even murkier.

Pete Buttigieg, the former mayor of South Bend, Indiana, seemed well positioned to be the early favorite of the partys moderates after his narrow win in Iowas first-in-the-nation caucuses - until a surge by Minnesota Senator Amy Klobuchar largely split the moderate vote between them in New Hampshire.

And while former Vice President Joe Biden lagged badly in both Iowa and New Hampshire, as the only moderate with substantial backing from African-American and Latino voters, he has vowed to fight on until Nevada and South Carolina, both with significant non-white populations, render their verdicts.

The three are also bracing for the entry of former New York Mayor Michael Bloomberg, who is skipping the early contests but has built an unprecedented self-funded campaign machine to compete in expensive states such as California and Texas, which vote in March.

The outcomes of the first two nominating contests suggest that the battle for the Democratic nomination to beat Republican President Donald Trump in November could go on for weeks or even months, and who ends up the champion of the partys moderates is shaping up to be key.

At the end of Tuesday nights primary, the votes amassed by Buttigieg, Klobuchar and Biden - a combined total of 53% with 91% of precincts reporting - easily outpaced the votes received by Sanders and his fellow liberal, Senator Elizabeth Warren, who together won 35% in a possible sign that voters still prefer a centrist candidate who could appeal to a broader electorate, including independents and Republicans.

Sanders is still a ways from taking much of a lead in delegates, said David Hopkins, an expert on presidential politics at Boston College.

If the other candidates do well enough that no one is forced out of the race, we sort of move on.

Iowa and New Hampshire award just 65 out of the 3,979 pledged delegates who will help select a Democratic nominee.

While Sanders, a senator from neighboring Vermont, got less than 30% of the vote in New Hampshire on Tuesday compared to the 60% he won in 2016 in a two-way race with Hillary Clinton there was no denying that his slim victory gave him the opportunity to build momentum.

Much of the Democratic mainstream worries that the unapologetically liberal Sanders would lose a match-up with Trump.

There is some panic that is really starting to settle in with establishment Democrats with the idea of Bernie Sanders being at the top of the ticket, said Joel Payne, a Democratic strategist who worked for the Clinton campaign in 2016. The chatter I hear is higher than ever on that.

Sanders supporters, like Democratic Congressman Mark Pocan from Wisconsin, the co-chair of Congressional Progressive Caucus, believe the party will rally behind Sanders if he keeps winning and proves that his message is connecting with voters.

I think everyone understands that hes got a message that is appealing to a lot of people, said Pocan, who joined Sanders on the campaign trail in Iowa.

The next two nominating states have diverse electorates and could provide a different verdict from Iowa and New Hampshire where whites account for more than 90% of the population.

Sanders, who has focused on turning out voters of color, young voters and irregular voters, has a strong chance to win Nevada, with its large Latino population, while Biden is still hoping to call upon South Carolinas African Americans to resuscitate his campaign.

While a new national poll this week from Quinnipiac University showed Biden support among black Democrats sliding from 51% to 27%, thats still ahead of 22% for Bloomberg and 19% for Sanders.

Up til now we havent heard from the most committed constituency in the Democratic Party, the African-American constituency. 99.9%. Thats the percentage of African-American voters who have not yet had the chance to vote yet in America, Biden said in Columbia, South Carolina, on Tuesday night.

When you hear all these pundits and experts on TV talk about the race, tell them, it aint over, its just getting started, he argued after his disappointing fifth-place finish in New Hampshire.

Both Buttigieg and Klobuchar face challenges over the African-American vote. Neither has shown inroads with black voters, with Buttigieg especially hampered by criticism of his tenure as mayor of South Bend, largely over his management of the police department and his economic development priorities.

While Bloomberg saw a surge in black voter support according to the Quinnipiac poll, a newly released audio of him defending the controversial stop-and-frisk program used by police during his time as New York mayor could threaten his newly found support. [L1N2AB1CX]

Money may end up being the determining factor. Buttigieg, Klobuchar and Biden were all scheduled to hold fundraisers in the coming days. Of the three, Buttigieg has consistently raked in the most cash, although Klobuchars campaign said on Tuesday it was making a new seven-figure TV ad buy in Nevada.

None of them will be able to compete with the financial might of Bloomberg, who has already spent more than $250 million on his campaign.

Hopkins said the looming presence of Bloomberg already has contributed to a feeling that the Democratic race is unsettled and could remain so even up to the nominating convention in July.

Its completely unique to this year, he said. It raises the prospect of no one getting the majority of delegates.

Reporting by James Oliphant in Nashua, New Hampshire, Editing by Soyoung Kim and Sonya Hepinstall

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New Hampshire result clogs up moderate lane for Democrats - Reuters

MANCHESTER, N.H. (AP) Democratic presidential front-runners Bernie Sanders and Pete Buttigieg beat back a barrage of attacks during a debate as rivals raised persistent questions about their ideology and experience, hoping to sow doubts about their ability to defeat President Donald Trump.

Reeling from a weak finish in this weeks Iowa caucuses, former Vice President Joe Biden was a chief aggressor throughout Friday night. He questioned Sanders status as a democratic socialist and said Buttigieg, the 38-year-old former mayor of South Bend, Indiana, doesnt have the background to lead in a complicated world. Sen. Amy Klobuchar of Minnesota, who is struggling to break into the top tier, voiced similar criticisms.

But Sanders and Buttigieg, who are essentially tied in Iowa, largely brushed off the broadsides.

Donald Trump lies all the time, Sanders said in response to suggestions that Trump would use his self-described identity as a democratic socialist to brand him and all Democrats as radical.

Buttigieg sought to turn skepticism of his resume into a positive, portraying himself as a fresh face from outside Washington with experience in dealing with real-life problems and ready to lead a weary nation in a new direction.

Im interested in the style of the politics we need to put forward to actually finally turn the page, Buttigieg said. He added a jab at Biden: I freely admit that if youre looking for the person with the most years of Washington establishment experience under their belt, youve got your candidate, and of course its not me.

Friday marked the eighth and perhaps most consequential debate in the Democratic Partys yearlong quest for a presidential nominee. The prime-time affair came just four days after Iowas chaotic caucuses -- and four days before New Hampshires primary -- with several candidates facing pointed questions about their political survival. While several candidates had strong moments, it was unclear the event would change the trajectory of the campaign.

Biden was especially explicit about the state of his candidacy during the opening moments, predicting he would take a hit in New Hampshire next week before the contest moves into more diverse states where he hopes to perform better.

He faced criticism on stage as someone too steeped in the ways of Washington to represent the change many Democratic voters say they are seeking. He responded by once again aligning himself with former President Barack Obama.

The politics of the past I think were not all that bad, Biden said. I dont know what about the past about Barack Obama and Joe Biden was so bad.

But Biden had to defend his long record as the candidates sparred over the decision nearly two decades ago to send U.S. troops to Iraq.

Biden acknowledged anew that his vote in favor of the war authorization as a senator was a mistake, while Sanders said his Senate vote against deploying troops was proof of his judgment on national security issues. Buttigieg, who was in college at the time and later served in Afghanistan, said he would have opposed the war, too.

While the debate was heated at times, there were moments of unity with candidates aware that Democratic primary voters have little desire to see an all-out intraparty brawl. When a moderator asked Klobuchar to respond to Hillary Clintons comments that no one likes Sanders, Biden walked over and gave him a hug. Klobuchar, meanwhile, joked that Sanders is just fine and noted times when they had worked together on policy.

A somber Biden was appreciative when Buttigieg defended him and his son, Hunter Biden, against attacks from Trump in the impeachment inquiry.

And while Biden challenged Sanders embrace of a version of socialism, most of his rivals seemed willing to overlook that political identity. When the moderator asked whether any of the candidates would have a problem with a democratic socialist as their partys presidential nominee, only Klobuchar raised her hand.

Warren avoided any direct criticism of her rivals and repeatedly pivoted to her core anti-corruption message. As Biden, Sanders and Klobuchar fought about the best way forward on health care, Warren did not engage, instead speaking broadly about the need to lower prescription drug costs.

Billionaire activist Tom Steyer and New York entrepreneur Andrew Yang, meanwhile, were fighting to prove they belong in the conversation.

Traditionally, the knives come out during this phase in the presidential primary process.

It was the pre-New Hampshire debate four years ago on the Republican side when then-New Jersey Gov. Chris Christie devastated Florida Sen. Marco Rubios presidential ambitions with a well-timed take-down. Rubio never recovered, making it easier for Donald Trump to emerge as his partys presidential nominee.

The stakes were particularly high for Biden, who has played front-runner in virtually every one of the previous seven debates but left Iowa in a distant fourth place. While reporting problems have blunted the impact of the Iowa contest, Bidens weakness rattled supporters who encouraged him to take an aggressive tack Friday night.

Klobuchar made a passionate pitch to moderate-minded voters unhappy with Biden and Buttigieg.

Im not a political newcomer with no record, but I have a record of fighting for people, she said. I know you and Ill fight for you.

The seven-person field highlighted the evolution of the Democrats 2020 nomination fight, which began with more than two dozen candidates and has been effectively whittled down to a handful of top-tier contenders.

There are clear dividing lines based on ideology, age and gender. But just one of the candidates on stage, Yang, was an ethnic minority.

Campaigning in one of the whitest states in the nation, Steyer repeatedly highlighted his support for reparations for African-Americans to make up for the impacts of slavery. His steady focus on race Friday was a reminder that hes invested heavily in South Carolina, where black voters are expected to play a deciding role and are central to Bidens strategy for success in later states.

Mike Bloomberg was not onstage Friday night, but the New York billionaire was referenced repeatedly as the candidates took turns bashing the the rich.

The former New York City mayor is bypassing New Hampshire, among the four states that vote this month, in favor of the delegate-rich states that hold primary contests in March and beyond. While no one has ever won the nomination with such a strategy, Bloomberg has caught the attention of establishment-minded Democrats concerned about Bidens viability and Buttigiegs thin resume.

Bloomberg is also poised to spend $1 billion on his presidential ambitions.

I dont think anyone ought to be able to buy their way into the nomination or be president of the United States, Warren said in one of her few aggressive moments. I dont think any billionaire ought to be able to do it and I dont think people who suck up to billionaires in order to fund their campaigns ought to do it.

___

Associated Press writers Will Weissert in Manchester, New Hampshire, and Thomas Beaumont in Des Moines, Iowa, contributed to this report.

___

Catch up on the 2020 election campaign with AP experts on our weekly politics podcast, Ground Game.

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Front-runners Buttigieg and Sanders beat back debate attacks - The Associated Press