2. This resolution does not apply exclusively to long-term capital gains.
As many debaters know, short-term capital gains are taxed at the same rate as income. Long-term capital gains (those realized after one year) are taxed at a lower, preferential rate. This resolution applies to both short-term and long-term capital gains. Two things happen when this policy is implemented. First, the tax rate on short-term capital gains is reduced to zero. Second, the preferential tax rate on long term capital gains is also reduced to zero. The result of this policy is that all capital gains are no longer subject to tax.