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Article: Reduce the Capital Gains Tax
- Article from:
- The Washington Post
- Article date:
- October 30, 1987
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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I couldn't disagree more with "Bad Idea From the Veep"
{editorial, Oct. 19}, in which The Post opposed reinstatement of
reduced capital gains tax rates. I can find no evidence to support
its claim that reduced capital gains tax rates would "cost the
Treasury a lot of money it cannot afford."
History has shown that reducing tax rates on capital gains
results in increased tax revenues. Capital gains occur when there is
a voluntary act: an individual elects to sell an asset. Clearly a
high tax rate inhibits such sales. The fact that low rates encourage
sales was proven at the end of last year, when the lower rates of the
old law created a flurry of transactions and an enormous windfall for ...