The Diminishing Returns of Class Warfare Rhetoric
The President's stimulus plan has been met with the inevitable argument that it is too heavily weighted in favor of "the rich" and unfair to working Americans. Today, this exaggerated argument is given little credence by the American public, and for good reason. Consumers and investors in America have increasingly become one and the same. This "Investor Class" is made up of a veritable cross section of America --young families, small business owners, and knowledge industry workers who work, save, and invest in order to pay for their children's education, purchase a new home, or plan for retirement. They are increasingly rejecting the hollow rhetoric of class warfare.
The face of today's investor has changed markedly in recent years. In fact, recent numbers indicate that 53 percent of those in the $25,000-$49,999 bracket already own stock and over 50 percent of Americans now own some type of financial asset. These Americans are increasingly supporting measures that will bolster their own savings while also providing a boost to the economy. I have introduced legislation that accomplishes both goals.
The Investment Tax Incentive Act, H.R. 44, creates a two-year window in which assets purchased during that time will lock in a reduced capital gains tax rate. Specifically, it cuts the individual rate from 20 percent to 10 percent, and from 35 percent to 20 percent for businesses, on new investments held for at least one year. This proposal focuses on the need to immediately bolster business investment, the key to economic growth. It will increase access to capital which will allow companies to expand and provide good jobs for American workers.
This isn't "trickle down" economics. It is an incentive for investors and an important reason why class warfare arguments just don't work anymore. Taxes on "the rich" are in fact taxes on opportunity, while policies that enhance wealth provide increased opportunities for all Americans. As the Investor Class expands into all income levels, these sentiments will only grow.
