Even though the candidates from both parties propose a wide variety of tax cuts, none would touch the tax that would most directly benefit investors. One reason why cap-gains is out of favor is that the rate already is low. Bush would give everyone a tax cut by reducing individual income tax rates across the board. Gore would rifle-shot his tax breaks to help people invest to pay for educational, healthcare and other necessary family expenses. As a result, the next president is likely to provide investors with more cash on hand and more incentives to keep investing.
Mutual funds are likely to be an important place for at least some of that extra scratch.
Gore is aggressively promoting IRA-like savings vehicles for education expenses. In addition, if the next president manages to get around to saving Social Security and Medicare from eventual insolvency, it's a safe bet that private savings accounts of some sort will be part of the solution. In the meantime, Bush is the more investor-friendly presidential candidate. His tax-relief program is deeper and broader than those of his opponents. Despite what you may have heard, both candidates would reserve for Social Security revenues now slated to enter the Social Security Trust Fund.