Senator Daschle Denounces Cut in Capital Gain Tax | AccountingWEB

Senator Daschle Denounces Cut in Capital Gain Tax

Rivals in Washington are lining up on both sides of an issue that has been smoldering for years. Will a capital gain tax cut occur in this administration, and is such a cut long overdue?

Senate Majority Leader Tom Daschle claims that Republican proposals to cut the capital gains tax from 20% to 15% would come with a substantial cut to the government.

"I think that you'd have to look at the long-term costs of the capital gains tax cut and they are substantial," said Senator Dashle.

President Bush is backing the proposal, however he has not set a timetable for putting the cut in place.

Senate Minority Leader Trent Lott has indicated a possibility exists that the cut would be implemented for a two-year trial period and would apply to sales of equities, bonds, and real estate investments.

"I have yet to see a tax cut that is only on the books for two years," said Senator Daschle, indicating his concern that the cut, once implemented, would be difficult to reverse.

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