Business: About-Face on Capital Gains

Republican Steiger is on the verge of forcing a tax cut

Rarely has the political climate changed so totally so fast on an economic issue. Only last fall, all the talk about taxes on capital gains—profits on the sale of assets such as stock, bonds and real estate—centered on prospects for a drastic increase. The Carter Administration drafted a proposal to tax all capital gains at full ordinary-income rates —which would effectively double the tax in many cases—but eventually sent Congress a recommendation for a much smaller rise. That still worried Representative William Steiger, 40, a...

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