Scrambling to take advantage of a shrinking federal deficit, the House, Senate and White House are each proposing their own tax cut plans and each includes a capital gains tax cut. The benefits could include an infusion of capital into the economy, as investors sell off assets for profits and reinvest the capital. But extravagant tax cuts could deplete federal reserves and possibly swell the deficit. The Business Journal Forum asks:

Is now the right time for a cut in the capital gains tax?

Fredric N. Richman,

Senior Partner

Richman, Lawrence, Mann, Greene, Chizever , Friedman & Phillips

I think they absolutely should cut the capital gains tax to keep the economy going. There is no reason to have a reserve of money because, if conditions get difficult, they could revisit the issue of restoring the tax.

Wendy Dorchester

Senior Vice President of Commercial Services

Long Beach Memorial Medical Center

Well it’s a very general question. I am pro- business, I do believe that a well-structured, well-targeted cut could help us to be more competitive in the global market. But it’s not just a yes or no answer. It really depends on being very strategic and very targeted, or else you end up benefiting a lot of people who will not increase the jobs and will not increase the economy.

Patrick Everett

Vice President/Senior Portfolio Manager

Northern Trust Bank

Yes. From my perspective, I manage money for people, and the cut in the capital gains tax will free up a lot of assets that people have been afraid to sell because they were afraid to get hit with a capital gains tax. That capital will only serve to make business stronger in the future.

Louis Rodriguez

Account Executive

Equity Marketing

Yes. The money saved by each individual by a reduction in the capital gains tax certainly would not adversely affect the federal deficit.

Hal Lieberman

President and CEO

HemaCare Corp.

Yes I do. It encourages investment and investment in turn creates new business, new industries and new jobs. People do invest. The performance of the stock market is proof of that.