That would produce a huge burst of revenue. (Capital gains doubled in the second half of 1986 once it became clear that the Tax ReformAct was going to raise rates starting in 1987 as people sped up realizations to avoid the pending rate increase.) Pete acknowledges that this would work, but sees no political prospect for a rate increase in the House.
He eventually rolled back some of his own tax cuts and in his second term, pushed through some of the most significant tax reform of the last century, the Tax ReformAct of 1986.