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Article: Wall St., NYC to gain from fed's tax cut. (New York City; capital gains tax)
- Article from:
- Crain's New York Business
- Article date:
- August 4, 1997
- Author:
CopyrightCOPYRIGHT 1997 Crain Communications, 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)
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Lower gains tax to boost firms' profits, city coffers
The long-awaited cut in the U.S. capital gains tax, passed by Congress last week, will give another boost to Wall Street's bottom line and help fill the city's tax coffers at a time when the surging stock market has already brought record prosperity to both.
With the Dow Jones Industrial average ahead 27% for the year, the city has increased by 70% its estimate of the profits that Wall Street firms will earn in 1997, to $8 billion, up from $4.7 billion made earlier this year. Those gains are expected after a record $11.3 billion in securities industry net income in 1996.
In addition, Wall Street ...