State : Bush Defends Capital Gains Tax Cut

PALO ALTO — President Bush said today that critics “couldn’t be more wrong” when they call his proposed cut in capital gains taxes “a tax break for the rich.”

Rather, he said, that proposal and other new investment incentives are needed to help America compete in the global economy. Bush, in a speech to managers and employees at Ford Aerospace’s Space Systems Division here, took note of the criticism of his proposal in Congress and elsewhere.

“Well, they couldn’t be more wrong,” he said. “Lower capital gains taxes will create jobs for those who don’t have jobs and help build a better America.”

Capital gains taxes are levied on the profits that businesses and individuals make on investments. Bush wants to cut the 33% maximum tax on capital gains to 15% and to exempt entirely the gains accrued by people with incomes under $10,000 a year.