Middle class families pay almost no dividend or capital gain taxes. Insofar as they hold stock, it is almost entirely in retirement accounts. This money will be taxed as ordinary income at the point when it is withdrawn regardless of whether or not it came from dividends or capital gains. Current tax law provides very generous exemptions for capital gains on homes, so few middle class people will ever pay capital gains taxes on their house.
This means that when Senator McCain proposed a cut in dividend and capital gains taxes, he was proposed a tax cut for rich people. He was not "considering additional economic measures aimed directly at the middle class" as claimed by Politico in an exclusive story.
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