Capital Gains Tax In New York - What Will Be The Fate ?
January 13, 2004
By Srinidhi Goenka
The capital gains tax policies have undergone major
reforms over the past few years. After the coming
in of the Republican Party, there have been massive
cuts in these taxes over the years with a view to
increase investments, create more employment opportunities
and spur economic growth all over the country. The
capital gains tax in New York has also been
reduced.
It is a surprising fact that the state of New York
did not vote for Bush in the re-election, they voted
for Kerry. In order to win them over and to further
his plan on capital gain tax in New York, Bush plans
to further cut the gains tax rate.
Bush and His New Plans
According to Bush, in order to increase American ownership of shares
in companies, he plans to reduce the taxes on capital gains. He
says that by doing this, he will help Americans to become more financially
secure and thus lead to the creation of new capital for expansion
and jobs.
However, critics argue that by reducing the capital gains tax,
the tax burden would increase on the average wage earner as they
would have to pay higher state and local taxes. On the other hand,
the rich would gain as they would be able to live off their investments
due to the lower taxes.
What happens in New York is yet to be seen. Whether these cuts
will win Bush more votes or will they hamper the day-to-day living
of New Yorkers? Will the rich become richer and the poor become
poorer as the critics predict?
The answer to these questions will become clear as the new policies
are revealed by the year-end. For the time being, all we can do
is cross our fingers.
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