Tax act 1997

The recent rapid rise in the stock market has some concerned that all the money is going to the wealthy but others point out that pensions also benefit. Most public pensions, especially in states like California, New Jersey and Illinois, are going broke and this market upswing will greatly benefit those states. During the Clinton years the NASDAQ rose from $1,000 to $5,000 and much credit was given to the Taxpayer Relief Act of 1997. This act lowered the capital gains tax from 28% to 20% and introduced a child tax credit of $400. It increased the tax free gain on home sales and increased the tax on estates to those over one million. 164 Democrats in the House and 37 in the Senate voted for this tax relief.