A Capital Gains Cut Won't Gore Wall Street

Perhaps it's just coincidence: A few weeks after the Republicans' dramatic sweep into power, the stock market starts a rally that carries the Dow Jones industrial average up nearly 900 points without so much as a hiccup. High on the GOP's list of promises is slashing the 28% maximum tax rate on capital gains. How much of the market's climb is attributable to the sweet smell of a tax cut is an open question. After all, lowering the rate raises investors' returns, reduces the cost of capital for corporations, and should create jobs and prosperity.

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