Controversy Over Capital Gains Tax
Recent publicity depicts the controversy over the Republican-sponsored legislation to cut capital gains taxes as a rich versus poor issue. Most Democrats believe that a cut in the capital gains tax is unfair because it mainly benefits the wealthy. Nothing could be further from the truth.
Anyone selling a home, farm, business or shares of stock is potentially subject to capital gains tax at a maximum rate of 33%. Persons with wage and ordinary incomes of less than $10,000 realize 21% of all gains. These are mainly retirees cashing in their lifetime savings. Persons with incomes of between $10,000 and $50,000 account for an additional 24% of all gains. Heaven help us if the Democrats think that these people are so unjustly wealthy that their earnings and savings should be taken away from them.
THALEIA WIDENMANN
Del Mar
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