Capital gains rates have been cut twice before, in 1978 and 1981.
Capital gains taxes, in effect, would rise under the Administration plan.
"Capital gains plays make sense with a 10 or 11 percentage point differential," he said.
But the capital gains taxes from the deal must be paid if the stocks and bonds are sold.
Capital gains taxes are paid on the profits from the sale of stock and other property.
Capital gains taxes for certain business properties would be eliminated in these communities.
Capital gains taxes, for example, are not being changed.
Capital gains taxes are low by the standards of the United States.
The effect, under existing tax law, was that the selling family members owed no capital gains taxes.
Capital gains taxes could climb back from a low of $50 billion in 2003 to $75 billion this year.
