, ▁in ▁ 2 0 1 0 ▁approximately ▁ 8 1 % ▁of ▁stock s ▁were ▁owned ▁by ▁the ▁top ▁ 1 0 % ▁income ▁group ▁and ▁ 6 9 % ▁by ▁the ▁top ▁ 5 %. ▁Only ▁about ▁one - third ▁of ▁American ▁households ▁have ▁stock ▁hold ings ▁more ▁than ▁$ 7 , 0 0 0 . ▁Therefore , ▁since ▁higher - in come ▁tax pay ers ▁have ▁a ▁much ▁higher ▁share ▁of ▁their ▁income ▁represented ▁by ▁capital ▁g ains , ▁lower ing ▁tax es ▁on ▁capital ▁income ▁and ▁g ains ▁increases ▁after - tax ▁income ▁inequality . ▁ ▁Capital ▁g ains ▁tax es ▁were ▁reduced ▁around ▁the ▁time ▁income ▁inequality ▁began ▁to ▁rise ▁again ▁around ▁ 1 9 8 0 ▁and ▁several ▁times ▁there after . ▁During ▁ 1 9 7 8 ▁under ▁President ▁Carter , ▁the ▁top ▁capital ▁g ains ▁tax ▁rate ▁was ▁reduced ▁from ▁ 4 9 % ▁to ▁ 2 8 %. ▁President ▁Ron ald ▁Re agan ' s ▁ 1 9 8 1 ▁cut ▁in ▁the ▁top ▁rate ▁on ▁un ear ned ▁income ▁reduced ▁the ▁maximum ▁capital ▁g ains ▁rate ▁to ▁only ▁ 2 0 % ▁– ▁its ▁lowest ▁level ▁since ▁the ▁Ho over ▁administration , ▁as ▁part ▁of ▁an ▁overall ▁economic ▁growth ▁strategy . ▁The ▁capital ▁g ains ▁tax ▁rate ▁was ▁also ▁reduced ▁by ▁President ▁Bill ▁Cl inton ▁in ▁ 1 9 9 7 , ▁from ▁ 2 8 % ▁to ▁ 2 0 %. ▁President ▁George ▁W . ▁Bush ▁reduced ▁the ▁tax ▁rate ▁on ▁capital