Asa Hutchinson: “I often get asked the question, are cuts in the tax on capital gains a tax break for the rich? Actually, it is a very…”

“I often get asked the question, are cuts in the tax on capital gains a tax break for the rich? Actually, it is a very interesting question. But the answer would reveal little more than the fact that the rich have, well, more money than the nonrich. But it is a fair question nonetheless. Who benefits the most from a tax cut on capital gains, the rich or the middle class? The answer is, it depends on how we measure it. If we measure by value, then, yes, most of the gains go to upper income people because upper income people have more money to invest. So that is not saying very much. But if we measure by the number of people who own a capital asset, we may be surprised to know that according to the Internal Revenue Service, the vast majority of taxpayers claiming capital gains are 77 percent. They have adjusted gross incomes of less than $75,000 a year. I repeat this surprising fact. According to the IRS, 77 percent of those claiming a capital gain on their tax returns have incomes less than $75,000 a year. It produces jobs, Mr. Speaker. That is why we need it.”