Word: cuttingly
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Dates: during 1980-1989
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Since the election, though, many Democrats have begun to see a certain expediency in welfare for the wealthy. The reason: a cut in the capital-gains tax would produce a burst of revenue for the Treasury, helping Congress meet its targets for reducing the federal budget deficit, at least in the short term -- the only term that seems to matter in Washington. During the first few years of a lower tax, investors would rush to realize the appreciation on their stocks and other assets and thus pay taxes on them earlier than planned. Once this spurt of early tax collections...
...Congress adjourned last week for its August recess, the capital-gains-cut bandwagon gained momentum. Amazingly, Republicans and conservative Democrats, who make up a narrow majority of the House Ways and Means Committee, rallied around a scheme even more shortsighted than the President...
...Administration plan would cut capital-gains taxes to 15% but would also phase in a rule requiring investors to hold an asset for three years in order to qualify for this rate. The House measure, proposed by Georgia Democrat Ed Jenkins, would cut capital-gains taxes to 20% on investments held at least a year. But the cut would be short-lived; in two years the rate would return to 28% with indexing for inflation. Investors would be sure to roll over their assets and produce a quick windfall for the Treasury -- at the expense of future tax collections. House...
...Offer a larger tax cut for investments that are held longer, and raise the tax sharply for speculation in which assets are churned in days or minutes...
...Cut the tax subsidy for corporate borrowing, which now distorts investment decisions and encourages the use of debt for speculative purposes...