"Isn't that the same as having a higher rate on capital gains?"

The bill would also reduce the top rate on capital gains from 33 to 28 percent.

The tax rate on long-term capital gains is now 15 percent.

Between 7 and 9 percent of the budget comes from taxes on capital gains.

Before that, the rate on capital gains had been significantly lower.

The maximum rate on capital gains, however, would stay at 28 percent.

Most of the tax on individuals' gains is now charged at 40%.

Currently, individuals do not have to pay taxes on gains up to $250,000.

The only tax cut that would actually add to the surplus is the one on capital gains.

At present, the rate on dividends and capital gains is 15 percent.