GOP Proposes Tax Break
Top House Republicans on Wednesday proposed a major tax break for investors as part of broader legislation expected to cut taxes by $800 billion to $900 billion over 10 years.
House Ways and Means Committee Chairman Bill Archer (R-Texas) said the GOP plan would cut the top capital gains tax rate on investment profits to 15% from 20%, retroactive to July 1, 1999. It would also lower the capital gains rate for taxpayers in the lowest income tax bracket to 7.5% from 10%, he said.
Democrats accused Archer of crafting a tax plan that would cater to big business and the rich at the expense of the poor, and they said President Clinton would be certain to veto the bill unless it was scaled back dramatically.
Congress cut the capital gains rate from 28% to 20% in 1997 (and from 15% to 10% in the lowest bracket).
The Ways and Means Committee is expected to finalize Archer’s tax plan by July 16.
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