Democrats Offer New Tax Cut Plan

House Democrats today offered an alternative tax treatment of capital gains that would focus on capital gains tax benefits to middle-income taxpayers.

Rep. Byron L. Dorgan (D-N.D.), a member of the House Ways and Means Committee, announced the alternative plan at a news conference just a day before the committee is scheduled to resume hearings on the fiscal 1990 deficit-reduction bill.

The alternative would target the majority of capital gains tax reductions to families earning less than $200,000 a year and would phase out the benefits to taxpayers with greater annual incomes.