George J. Mitchell Quotes
... a tax break for the wealthy paid for by the middle class.
Describing the capital gains tax:
George J. Mitchell, U. S. Senator (Democrat, ME), Senate Majority Leader, Chairman, Northern Ireland Peace Talks, Quoted in New York Times, September 10, 1989
Sourced by: Eigen's Political and Historical Quotations
At the time there were tax breaks for large yachts but not for small boats that a middle class person might own. It was another example of the tax laws at the time where the poor paid only Social Security taxes, and the rich lobbied for an got very large tax breaks and subsidies and hence the burden was carried by an increasingly stressed middle class and by cuts in services to the needy. The companies that made the yachts also supported the tax breaks as did the unions and workers in the industry. See {624985}. .
See Franklin Delano Roosevelt {32528} for the basic principle of progressive taxation.
An income tax had been instituted during the Civil War but had lapsed. Existing taxes were all excise or head taxes—very regressive. Later there was a political movement to bring back the income tax with the intention of taxing all income equally. There was a titanic struggle which culminated in a Constitutional Amendment allowing the income tax. None of the original politicians, for or against, the income tax could never imagine an income tax that would charge lower rates for investment income. That was the entire purpose of the income tax at the beginning—to tax investment (unearned) income. The “capital gains tax” was the creative way of the rich getting back some of what they thought the lost when the income tax was instituted.
George John Mitchell Jr. is an American politician, diplomat and lawyer. A leading member of the Democratic Party, he served as a United States Senator from Maine from 1980 to 1995 and as Senate Majority Leader from 1989 to 1995. He briefly served as a United States District Judge of the United States District Court for the District of Maine from 1979 to 1980.