THE CAPITAL GAINS TAX: Should It Be Cut ?

Should it be cut?

A key issue in Washington's current stock-market investigaton is the capital-gams tax. It is attacked on the one hand as a measure that stifles initiative and economic growth, on the other as a rich man's relief handout. Almost every argument about it is beclouded by a mist of special interest, politics and ignorance. Is the capital-gains tax fair? Should it be changed?

The tax on capital gains (i.e., profits made from the sale of anything from a house or business to stocks and bonds) was first imposed in 1922, set at 12½%...

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