|
|
Article: CUT CAPITAL GAINS, BUT CAREFULLY THE ISSUE HOUSE REPUBLICANS SAY A REDUCTION WOULD HELP STIMULATE THE ECONOMY. OUR OPINION ANY ROLLBACK SHOULD NOT TURN INTO A BONANZA FOR THE WEALTHY.(PERSPECTIVE)
- Article from:
- Albany Times Union (Albany, NY)
- Article date:
- December 11, 1994
CopyrightCOPYRIGHT 1994 Albany Times Union. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The House Republican proposal to reduce the capital gains tax is mostly a good idea.
What can be said in its favor are essentially two things: First, the tax as it is now structured is unfair. Second, a reduction in the tax would encourage savings and investment, and thereby, almost surely, stimulate the economy.
What can be said against it is that, as now conceived, it would too greatly work to the benefit of the wealthy.
The tax is unfair, as most homeowners and every stockholder knows, because the levy on capital gains is less (on those assets held for a period of time) a tax on real gains than on inflationary ``gains.'' For example, if ...