This is why over the last 45 years every time the capital gains tax rate has been raised, capital gains revenues have declined, and every time the capital gains tax rate has been cut, capital gains revenues have risen.
Capital gains revenues had doubled by 2005, despite the 25% capital gains rate cut adopted in 2003.
But don't count that child tax credit or capital gains tax cut yet.
They adopted the largest capital gains tax cut in history, reducing the rate by nearly 30%, from 28% to 20%.
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In 1998, after the top long term rate on capital gains was cut to 20%, the top 400 paid 22%.
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The Administration's fatal fiscal weakness is its failure to deploy the most effective lever of all: a capital gains tax cut.
"It's no secret I'm not wild about a capital gains tax cut, but we're going to stay unified as we approach these things, " he said.
However, after the 1996 capital gains tax cut got our economic pipe fitters working overtime, the Fed stood idly by while the our monetary water pressure fell.
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Usually, it makes a sensible analysis of the problem, and proposes what should be done: over a capital gains tax cut, for example, or stock-option accounting, or pension reform, or telecoms deregulation.
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The reason for this is that when the capital gains rate was cut, more taxpayers sold their capital and realized their gains, and a rising stock market produced more gains.
The capital gains tax was cut to spur investment, and it does not do that.
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In May 1997, under President Bill Clinton, the top capital gains rate was cut from 27% to 20%.
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But inflation subsided, and in 1997 the nominal capital gains exaction was cut from 28% to 20%, and cut again in 2003 to 15%.
Clinton got a balanced budget and a capital-gains tax cut.
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In the late 1970s, the market bobbed up when a nice capital-gains tax cut came in 1978, but the dollar continued to be devalued and other taxes went up.
And taxes on capital gains will be cut from 28% to 20% for assets held for 18 months, and then to 18% for assets purchased after 2000 and held for five years.
Apparently, Mr. Obama failed to notice that President Bill Clinton saw his strongest period of economic growth only after his health-care takeover and stimulus bills were defeated, welfare rolls were pared, the capital gains tax was cut, and the budget was balanced.
One would index a cut in capital gains taxes to changes in inflation, which the administration believes would cut too deeply into government revenues in years to come.
But in appropriate circumstances this planning can cut capital gains taxes by more than half.
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After the capital gains tax rate was cut from 28% to 20% during 1996, the economy boomed for four straight fiscal years.
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Between 1980 and 2000, the top marginal income tax rate was slashed to 39.6% from 70%, and between 1977 and 1997 the capital gains tax rate was cut to 20% from 39.9%.
Once the top rate of capital-gains tax is cut to 20%, this discrepancy widens, raising the incentive for people, particularly business owners and the self-employed, to disguise their income as capital gains.
Out of the chute he tripped on capital gains by telling you a cut wasn't needed.
Yes, it would be nifty if Greenspan loosened his fist and we got a cut in capital gains taxes.
The Republican Congressional majorities, led by House Speaker Newt Gingrich, cut the capital gains rate by nearly 30% in 1997.
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But over the last 40 years, every time the capital gains tax rate has been cut, revenue has gone up.
Clinton eventually cut the capital gains tax, and the deregulation push that began in the late '70s continued under both presidents.
Democrats accuse Republicans of shortchanging the middle class in favor of a big cut in capital gains taxes, from 28 percent to 20 percent.
The new Republican Congress cut the capital gains tax rate by 40%, and reduced other tax burdens on capital investment, leading to a resurgent economy.
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