In 1997, the Republican Congress pushed through the Taxpayer Relief Act which Bill Clinton signed (and subsequently took credit for, even though it was part of the Contract for America, which he opposed). Among other things it made drastic cuts to capital gains taxes. Its positive effect on the stock market was dramatic.
Just a thought, given today’s stock market gloom, why doesn’t somebody cut capital gains taxes now?
Granted not too much capital is gaining these days but that also is another way of saying that it would be an easy proposal to implement. We must remember that investors are people who look to the future. A cut in capital gains tax perhaps may be just the thing to perk up the stock market. Once the money starts flowing in, stock prices will start to go up again.
Can’t be
any worse than throwing taxpayers money around like its confetti at every failed business in sight.
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