Proposed Capital-Gains Tax Cut May Take Hugh Bite from Treasury

Beginning of article

WASHINGTON (AP) _ Republican proposals to cut the capital-gains tax may cost the treasury twice as much revenue as estimated officially, a senior congressional researcher said Wednesday.

House Republicans propose halving the tax on gains from selling real estate, securities and other assets, indexing the tax to exclude the effect of inflation and allowing individuals to deduct losses on the sale of their home.

According to Congress' Joint Committee on Taxation, the proposal would cost $54 billion through 1995 and $170 billion through 2005.

Advocates of lowering the capital-gains tax rate argue it would encourage investors to sell their assets to …