Article: Tax Cut for Capital Gains Called Peril to '86 Law, Boon to Wealthy

Republicans and Democrats who helped draft the 1986 Tax Reform Act said yesterday that President Reagan's suggestion to Congress last night to recreate a tax break for capital gains would undermine the nation's new tax system-Reagan's hardest-won domestic achievement.

"Ronald Reagan should not make a proposal such as this," said Sen. Bill Bradley (D-N.J.), known as the "godfather" of the tax changes enacted in 1986. "A cut in the capital gains rate will create tremendous pressure to raise tax rates, {meaning} loopholes for the rich and the special interests and high tax rates for all of us."

"If we reintroduce a capital gains preference, it would be an easy and short step toward ...

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