Would a Capital Gains Tax Cut Increase or Reduce Government Revenue?
Last year the House passed a capital gains tax cut which subsequently died in the Senate. The Joint Committee on Taxation (JCT) prediceted the bill would reduce federal revenues by about $60 billion over the next decade. The National Center for Policy Analysis predicted the bill would increase federal revenue by $60 billion. Congressional opponents of a capital gains tax cut agreed with the JCT. Congressional supporters agreed with the NCPA.
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