Tax Cut to Benefit 1%, Study Says : Capital gains: Wealthy families would get an average $19,599 break, which would be paid for by poorer taxpayers, a private group says.

One percent of American families would save an average $19,599 from a proposed capital gains tax cut and 80% would face higher taxes to pay for the benefits, according to a private analysis released today.

“The four-fifths of American families whose incomes are below $61,000 would receive an average capital gains tax benefit of only $30,” according to the study by Citizens for Tax Justice, a coalition of labor, public interest and citizens groups.

“Since most families own no capital assets other than their homes, most actually would get no capital gains tax break at all,” it said. These people “would face higher taxes to pay for the cost of this enormous new loophole for the very wealthy.”

Those whose incomes place them in the top 1% would get an average tax cut of $19,599, it said.

The Washington-based Citizens for Tax Justice describes itself as a nonprofit, nonpartisan coalition working for fairer taxes at the federal, state and local levels.

Capital gains are profits from the sale of stock, real estate and other investments. They now are taxed at the same rates that apply to wages and other income.

President Bush has made cutting the tax a top priority, contending that such a reduction is needed to keep the economy growing. His Administration has pressed for a reduction during this year’s budget negotiations with Congress.

The Administration has never denied that the wealthiest taxpayers would be the biggest beneficiaries of a capital gains tax cut. But it contends that the proposed tax cut would spur investment and create jobs.