Suddenly, Republicans are all about increasing tax revenues from rich people. In the last weeks of the campaign, Mitt Romney talked about capping itemized deductions for high-income taxpayers (which, unfortunately for his arithmetic, would not nearly have compensated for the lower tax rates he proposed). John Boehner has told his caucus that they have to be willing to accept increased tax revenues (but out of the other side of his mouth says that tax rates cannot be increased). Glenn Hubbard, in the Financial Times, also suggests increasing revenues by closing loopholes: "Tax deductions should be scaled back, especially in the areas of mortgage interest, charitable giving and employer-provided health insurance."

What do all of these proposals have in common? They pass silently over the most important loophole for the rich: artificially low tax rates on investment income, whether capital gains (profits from sales of assets) or dividends (cash distributions from corporations to shareholders).