Homeowners who realize capital gains on the sale of their residences, holders of mutual funds and stocks, and millions of people enrolled in pension plans which invest in stocks would benefit from a cut in the top marginal tax rate from 28 to 14 percent.

• More than 30 million households now own stocks, bonds or money market mutual funds -- compared to just 4.6 million as recently as 1980, according to the Investment Company Institute.

• With the Standard and Poor's 500 stock index up 124 percent in the past six years, the value of their holdings has greatly increased.

• Of tax returns filed in 1994, 11 percent had capital gains income -- versus 7 percent in 1980.

• And 56 percent of those filers had total income of less than $50,000 a year.

The top capital gains tax rate has been 28 percent since the 1986 Tax Reform Act. Prior to that, it was 20 percent. For taxpayers now in the 15 percent bracket, 50 percent capital gains rate cut would reduce their capital gains rate to 7.5 percent.

While a majority of taxpayers who report capital gains earn less than $50,000, the 1 percent of taxpayers who make over $200,000 account for 60 percent of capital gains revenue.

Source: Anne Willette and Beth Belton, "GOP Pitches Gains Tax Cut to Middle Class," USA Today, August 15, 1996.

Some economists are presenting proof that repeal or reduction in capital gains taxes would be every bit as beneficial to those in lower income groups, as to those in higher brackets.

• IRS data show that 56 percent of income tax returns reporting capital gains were for those having less than $50,000 in income.

• Some 83 percent of all capital gains returns were from those making less than $100,000.

In a 1981 study, Joseph Minarik -- now with the Urban Institute -- looked at IRS data and subtracted out capital gains from income. This corrected an error often made by researchers which inflated earnings figures.

• He found that when capital gains were excluded, 26 percent of all such gains went to those with incomes under $20,000.

• Only 25 percent went to those with incomes over $200,000.

• The rest went to those with incomes somewhere in between.

Source: Perspective, "Why Cut Cap Gains?" Investor's Business Daily, February 25, 1997.