[Congressional Record Volume 143, Number 63 (Wednesday, May 14, 1997)]
[House]
[Page H2597]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          TAX ON CAPITAL GAINS

  (Mr. HUTCHINSON asked and was given permission to address the House 
for 1 minute.)
  Mr. HUTCHINSON. Mr. Speaker, I often get asked the question, are cuts 
in the tax on capital gains a tax break for the rich? Actually, it is a 
very interesting question. But the answer would reveal little more than 
the fact that the rich have, well, more money than the nonrich. But it 
is a fair question nonetheless.
  Who benefits the most from a tax cut on capital gains, the rich or 
the middle class? The answer is, it depends on how we measure it. If we 
measure by value, then, yes, most of the gains go to upper income 
people because upper income people have more money to invest. So that 
is not saying very much. But if we measure by the number of people who 
own a capital asset, we may be surprised to know that according to the 
Internal Revenue Service, the vast majority of taxpayers claiming 
capital gains are 77 percent.
  They have adjusted gross incomes of less than $75,000 a year. I 
repeat this surprising fact. According to the IRS, 77 percent of those 
claiming a capital gain on their tax returns have incomes less than 
$75,000 a year.
  It produces jobs, Mr. Speaker. That is why we need it.

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