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Imperial Valley Press
El Centro, Imperial County, California
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House Democratic Leader Rainey advocates repealing capital gains tax to prevent wealthy from avoiding income taxes via stock losses; opposes taxing small incomes under $5000 and luxury sales taxes. Washington, Dec. 29.
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WASHINGTON, Dec. 29. (U.P.)—House Democratic Floor Leader Rainey today advocated a change in present tax laws, which permit wealthy people to unload stocks at depressed prices and avoid income taxes.
This practice is permitted by the so-called capital gains and losses tax, which Rainey said should be repealed.
"If we are going to get any additional revenue from increased taxes on the wealthy, we will have to repeal this provision," he said. "Its repeal is a necessary corollary to any program to increase the government's revenues."
"This practice is going on in the stock market right now. Wealthy people are unloading stocks at a loss which they will deduct from their income tax."
Rainey and other Democratic leaders in the house at the same time reiterated their opposition to increased taxes on small incomes. They tentatively set $5000 as the smallest income on which taxes should be increased.
Democratic leaders also have thrown overboard the Mellon program of sales taxes on such things as automobiles, radios, theatre tickets. "A luxury tax," said Rainey, "is no good because nobody is buying luxuries now. It wouldn't raise any revenue."
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Domestic News Details
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Washington
Event Date
Dec. 29
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Outcome
advocated repeal of capital gains and losses tax provision; opposition to increased taxes on small incomes below $5000 and to sales taxes on luxuries
Event Details
House Democratic Floor Leader Rainey advocated repealing the capital gains and losses tax, which allows wealthy people to sell stocks at depressed prices and deduct losses from income taxes to avoid taxation. He stated this repeal is necessary for increasing government revenues from the wealthy. Democratic leaders opposed increased taxes on small incomes, setting $5000 as the threshold, and rejected the Mellon program of sales taxes on automobiles, radios, and theatre tickets, calling luxury taxes ineffective due to lack of luxury purchases.