Dole Wants Small Businesses to Get Capital Gains Tax Break
Ap, St Louis Post-Dispatch (MO)
Bob Dole announced more of his economic package Thursday, saying he will propose a new exemption for capital gains taxes for small businesses - all part of an effort to shrink the size of the IRS and limit its scope.
The overall plan's centerpiece could be a six-year tax cut of up to $600 billion, his aides suggested.
Dole told a business group that under his plan - now expected to be made public early next month - small-business investments could be exempt from the capital gains tax so long as the proceeds are "invested in a new small business."
Capital gains are the profits from the sale of real estate, stocks or certain other investments. They are currently taxed at a maximum rate of 28 percent.
Dole insisted he had made no decision on the overall economic package.
He has said the package will include a major tax cut, and he is known to be considering two major variations - an across-the-board tax cut of up to 15 percent, or a repeal of the 1990 and 1993 tax increases with a return to the lower tax brackets that were in place in 1986.
Either plan would cost about $100 billion a year, or $600 billion over six years. That time length was selected because Republicans in Congress want to balance the federal budget by 2002.
Dole's remarks came amid newly published reports that he was considering a range of strategies to help pay for the $600 billion in reductions.
The Washington Post quoted Thursday from what it said was a campaign working paper that suggested that 40 percent of the revenue losses would be made up by stronger growth of the U.S. economy. It also suggested closing corporate tax loopholes, increasing enforcement of customs laws, reducing the federal workforce and making further cuts in domestic spending.
The working paper amounts to a laundry list of various proposals being looked at as components of the plan. Dole's aides have confirmed the existence of such a working paper.
The concept of a six-year $600 billion tax cut is "under serious consideration," said Nelson Warfield, a spokesman for Dole.
He called Dole's economic plan "a work in progress" and said details included in the working paper were "entirely consistent with Bob Dole's long commitment to fighting excessive taxation. …