Max Baucus: “On the substance, I might add, however, that there are no capital gains provisions in the President's proposed tax cut…”

“On the substance, I might add, however, that there are no capital gains provisions in the President's proposed tax cut bill. This would be adding a whole new subject, which, frankly, is difficult for us in the committee to incorporate along with the other provisions we have in the bill. Second, I might add that the provision offered by the Senator provides for a lower capital gains rate, which is temporary--only a couple, 3 years. In effect, we have heard a lot of criticisms of the bill because of phase-ins and phaseouts, now-you-get-it, now-you-don't, which in the main are legitimate criticisms. But they are there because Senators want other provisions; namely, marriage penalty relief and the child tax credit increased $1,000 over $500. They would like to have rates reduced, estate tax provisions, and they would like to have this new 10 years. Altogether, it is hard to fit everything within $1.35 trillion, to make it fit, because Senators so strenuously argue for other provisions. We have had these phase-ins and we hope at a subsequent date we can reduce them. I might add that we have begun to phase out the Pease amendment, and we phased out the personal exemption. I might add that this amendment adds another complexity. I don't think we want to do that. There are a lot of ways to address capital gains.”