By Bob Katzen

The Senate 5-32, rejected an amendment that would reduce the short-term capital gains tax from 12 percent to 5 percent.

Amendment supporters said that there are 26 states that currently tax short-term capital gains at a rate of 5 percent or lower, including all of our surrounding states. They noted that both the House and the governor favor the reduction. They asked why the capital gains tax or any tax imposed should be charged at a higher rate than earned income.

Amendment opponents said the state cannot afford the $117 million loss in revenue that this tax cut would cost this year. They argued the cut would do nothing to help the costs of housing and living.

(A “Yes” vote is for the reduction to 5 percent. A “No” vote is against the reduction.)

Sen. Patricia Jehlen No