|
|
Article: Market mixed on munis' fate if capital gains is cut.
- Article from:
- The Bond Buyer
- Article date:
- November 30, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. 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)
|
A cut in the level of the capital gains tax would enhance stocks relative to bonds, municipal market players agree. The question is, how much?
Some say the tax-free market would weather the change nicely, especially because the market has already priced in the cuts Congress has approved, to a top individual rate of 19.8% and a top corporate rate of 28%, retroactive to Dec. 31, 1994. The current level is 28% for individuals.
Those rates are anything but certain, however, given the enduring budget standoff between Congress and President Clinton, players point out.
Any capital gains tax cut will particularly benefit small- capitalization stocks, which ...