Final answer:
George W. Bush's plan for capital gains tax reduction reflects conservative values of supply-side economics and minimizing government intervention in the economy, with the aim of stimulating growth through increased investment from wealthier citizens.
Step-by-step explanation:
President George W. Bush’s plan for capital gains tax is fundamentally connected to conservatism, as it aligns significantly with conservative economic principles such as supply-side economics, small government, and tax reductions, particularly for the wealthy.
The belief was that cutting taxes for higher income brackets would lead to more investment and job creation, which is a cornerstone of fiscal conservatism. This economic strategy represented a continuation and an intensification of the conservative agenda that had been expanded during Ronald Reagan's administration.
Bush's capital gains tax cut was intended to benefit investors by lowering the maximum rate to 15 percent, which contrasted significantly with the higher rates in the past, including those under Reagan. These tax policies were part of larger tax cuts aimed at stimulating economic growth by increasing the disposable income of the wealthy, which was seen as a way to increase investment and create jobs. However, this approach to taxation and government spending often draws criticism for benefiting the wealthiest individuals disproportionately and for increasing the federal deficit.