Article: White House revives plan for a capital gains tax cut

In Washington, which is preoccupied with war, a reduction in the capital gains rate was quietly locked into President Bush's new budget this week.

The economy has taken such a backseat to the Persian Gulf war that even middle-level presidential aides are unaware that the capital gains tax cut has been resurrected. That overturns pre-Christmas statements from the White House and Treasury Department consigning Bush's 1988 campaign promise to oblivion.

The budget will be designed to protect a capital gains tax cut from a Democratic "fairness" attack by surrounding it with other proposals in an anti-recession "growth package." Whether Bush touts it in his Jan. 29 State of the Union message ...

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