Comparing cap gains policies of the pres candidates

Interesting story by CNNMoney on the cap gains components of the economic plans presented by Obama and McCain...

For the candidates, changing the tax rate stems from their economic philosophies. McCain believes tax cuts stimulate growth, while Obama wants to shift the more of the tax burden from the middle class to the wealthy.

While adjusting the rate would impact the deficit - at a time when the federal government needs money - experts said the measures should be examined as part of the candidates' overall economic policies.

That said, Obama will have a tough time getting an increase in the capital gains rate through Congress if the economy remains weak, said Joel Slemrod, director of the University of Michigan's Office of Tax Policy Research. It's always harder to pass a tax increase during a recession.

Whoever wins will have to address the capital gains tax by the end of 2010, when the current 15% rate is set to expire. The rate will then revert back to 20%, where it stood before the Bush administration changed the tax laws in 2003.