Panel Votes Capital Gains Cut
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WASHINGTON — In a major victory for President Bush, the House Ways and Means Committee today approved a tax cut for capital gains despite vehement objections from Democratic leaders.
The proposal, which liberals claim is a giveaway to the rich, won by 19 to 17 as six conservative Democrats sided with the 13 Republicans on the panel.
The plan, co-sponsored by Reps. Ed Jenkins (D-Ga.) and Bill Archer (R-Tex.), would reduce the maximum tax rate on profits from sales of assets from the current 33% to 19.6% for 2 1/2 years.
House Majority Leader Richard A. Gephardt (D-Mo.), a member of the committee, said the battle would continue when the issue reaches the full House later this month.
“This was George Bush’s idea to help out his wealthy friends, and the people who are going to wind up paying for it are the middle class,” he said.
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