INVESTMENT TAX RELIEF
See Also: ITIA text | ITIA summary | ITIA op-ed
The Hill OpEd
Ways & Means Hearing Statement
LETTERS OF SUPPORT
National Venture Capital Association
The Financial Services Roundtable
American for Tax Reform
The President's call for economic stimulus is a critical starting point for creating jobs and increasing investment in the economy. As he has said, we need to get people back to work and soon. Too many Americans are out of work today, and that's not good for our economy. I look forward to working with the President and my colleagues from both sides of the aisle to come up with a package that provides the kind of benefits needed to revitalize the fundamental components of our economy.
To that end, I have introduced a bipartisan capital gains proposal dealing with new asset purchases, which I believe would add greatly to any final stimulus package enacted by Congress. The Investment Tax Incentive Act will create a two year window in which assets purchased receive a locked-in capital gains rate. The rate for these purchases would fall from 20-10 percent for individuals and from 35-20 percent for businesses. The proposal also cuts the effective rate for Qualified Small Business Stock to 7 percent. The aim of the legislation is to stimulate economic growth by encouraging investment in the capital market once again.
In today's economy, over 50 percent of the American people are corporate owners. These members of the 'Investor Class' deserve incentives to get back into the stock market and begin building personal wealth they can use for a college education, a new car, or a new home. If we can help investors and companies generate more income, we will see more jobs created, more economic growth, and even more government revenues. I believe my proposal will help Americans from all walks of life build a better future for themselves, their families and their businesses.
