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Article: Speculating on a Capital Gains Tax Cut
- Article from:
- The Washington Post
- Article date:
- December 1, 1994
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 read with dismay Sen. Bob Dole's proposal to exempt 50
percent of profits from the capital gains tax {news story, Nov. 21}.
It lacks imagination to invoke the failed logic that reduced capital
gains stimulating economic development. The logic assumes exempted
profits would be reinvested, thus capitalizing industrial and
economic growth while regenerating tax revenue.
The assumption is naive. Businesses sell stocks or borrow
through bond issues to finance their needs. They do not trade in
stocks and bonds. Stock, bond and commodity speculators trade in the
world of capital gains. These modern-day riverboat gamblers produce