The American Spectator

Reader Mail

p> CAPITAL IDEA br> Re: Lawrence Henry's The Dividend Tax Cut: The Right Questions : /p> p>Bush's plan eliminates taxes on capital gains as well as dividends. Corporate profits that have already been taxed could be excluded from gains when an investor sold his stock. This means that almost all U.S. stocks would get a boost from this plan, and not just dividend-paying ones. However, it's very doubtful that this plan will make its way through the Senate. I wouldn't count my dividends before they're hatched. br> -- unsigned /p>

Lawrence Henry replies: The writer is right, but of course the tax cut on capital gains (on an imputed basis) requires a fair amount of explanation. It looks like the Bush administration has been fiendishly clever, putting through a capital gains tax cut in a form that no Democrat can get into a sound bite. Demagogue-proof? We'll see.

p> IF IT'S BROKAW, FIX IT br> Re: David Hogberg's Media Bias and the Bush Plan :

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