I wouldn?t worry about losing the low capital gains tax rate under the Democrats. Most Democrats voted for the Taxpayer Relief Act of 1997 which included lowering the capital gains tax rate.
In 1991 the first Bush was President - remember the one that broke his ?no new taxes? promise. So you can?t blame 1991 economic woes on the Democrats.
During President Clinton?s presidency we had budget surpluses. Bush and the Republican Congress have given us record braking deficits and a soaring federal debt.
The big tax breaks the Republicans gave to the wealthiest Americans has actually contributed to the higher national debt and increasing interest rates.
Eco, the 1991 real estate problem's were directly the result of the demo's wanting to teach Bush Sr. a lesson on the "no new taxes" theme. They basically re-wrote the tax code with regards to real estate depreciation schedule. It devasted investors who were in limited partnerships, and all rental property schedules were increased by 30%! During that period you could drive down 30-A and you saw double the number of "for sale" signs that you see today. You could have purchased beach front for $85-100,000.00!
You are correct regarding the 1997 tax relief act, the demo's along with the repo's did reduce capital gains tax to 30%, however it was not until the repo controlled congress took over was it reduced to 15%.
I happen to fall into those so called "tax breaks for the wealthy", and at the next sowal event, I want you to show them to me, cause my account has yet to do the same. And believe me, I ask himevery year around April 15! If you have a buddy who is a real estate agent down there, he/she is probably looking for the same breaks. You may want to give a seminar! You will find the biggest tax breaks have been for those of us who choose to invest in the real estate market, something anyone with a few dollars can still do, even along 30-A.
