Article: Lower the capital gains levy and boost tax revenues.(Originated from Knight-Ridder/Tribune News Service)

KRT FORUM

By Gerald P. O'Driscoll Jr.

WASHINGTON _ Truth is the first casualty in partisan budget wars.

A cut in capital gains tax rates is being painted as a tax cut benefiting the rich at the expense of average Americans. The reality is more nearly the opposite.

In a recent and important study, Stephen Moore and John Silvia of the Cato Institute provide a dispassionate analysis of the major issues. (Cato is a Washington-based, market-oriented think tank.)

First, on who pays the capital gains tax: In 1992, 56 percent of all returns reporting capital gains were from households with incomes below $50,000. Eighty-three percent were from ...

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