WASHINGTON -- President Bush suggested for the first time yesterday that budget constraints would prevent him from proposing a cut in the capital gains tax next year.
"I haven't given up my philosophical commitment to the idea that capital gains would stimulate growth," the president said at a news conference with regional reporters. "But we're faced with this practical problem as to what we can do, not just on capital gains but on other stimulants that cost money."
Bush was badly bruised politically this year in his unsuccessful attempt to win a lower tax rate on capital gains, which are profits from the sale of investments like stocks, bonds and real estate.
Democrats argued that the proposal would have benefited rich people for the most part.
In an interview earlier this week, Treasury Secretary Nicholas F. Brady said he was recommending against trying again for such a tax cut next year because he thought it would lead to a fight with Congress that the administration could not win.