Capital Gains

Although the Administration is pro posing to renew the fight for a capital-gains tax cut, it doesn't intend to invest much in the effort. That's just as well, given changes in the House Ways & Means panel that render the cause all but hopeless. In 1989, Alabama Democrat Ronnie G. Flippo was a key swing vote behind a committee revolt that sent a capital-gains cut to the floor over the opposition of Chairman Dan Rostenkowski (D-Ill.). But Flippo left the House to run for governor. His replacement on the panel: Jim McDermott (D-Wash.), a reliable backer of the Democratic leadership.

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