Experts: Limited benefit
Most tax experts, however, said that the difference in the candidates' stances is of minimal importance.
For one thing, the jury is out on whether shareholders change their behavior based on shifts in the capital gains rate, said Clint Stretch, managing principal of tax policy at Deloitte in Washington. It would only make a difference to someone with the potential to have an extraordinary gain, such as the case of successful small business owner who is looking to sell.
Those making more than $1 million, who would get 66% of the benefit, would see their federal tax bill drop by $72,255, on average, while their average federal tax rate would fall by 2.3 percentage points, according to a Tax Policy Center analysis.
Meanwhile, those earning between $75,000 and $100,000, who would get 0.8% of the benefit, would see their taxes drop by $31, on average, but get no reduction on their tax rate, the analysis found.
If anything, slashing the capital gains tax for two years may prompt more people to sell by the end of 2010, injecting more volatility into the stock markets, experts said.
========= from cnn IIRC comparing the capital gains rate proposals between Obama and McCain.
OTOH, cutting payrolls taxes for those making relatively little income will put that money directly back into the economy.
I would bet more on the effects of people spending the money now rather than some supposed benefit in the future. |
