TAXES: Capital Gains Under Fire

AN executive who earns $30,000 in salary this year could easily wind up paying $5,180 in federal income tax. His neighbor who also makes $30,000, but gets it entirely in the form of profit on the sale of stock, could pay less than half as much. Is that fair? To Richard Nixon's economists, the lower tax on the stock profit is both a just reward for capitalist risk taking and a necessary stimulant to investment. To George McGovern's followers, the preference is the biggest "loophole" in the tax code. Says McGovern: "Money made by money should be taxed at...

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