The American economy is the world’s most dynamic, productive marketplace. It’s also the most free. By rejecting oppressive tax policies and overly burdensome regulation, America has encouraged economic growth and job creation. In the 21st century, it is more important than ever that we support policies that recognize Americans today are entrepreneurs and investors.
Wall Street and Main Street are no longer so far apart. A new “Investor Class” claims over fifty percent of the nation. The expanding availability of IRAs, 401(k)s, and other long-term investment plans are allowing Americans at all levels to save for retirement, home purchases and college tuition, while at the same time providing the fuel for economic growth - capital - to industries ranging from Blue Chips to high-tech start-ups.
Small businesses now account for half the private sector economy and three-quarters of employment growth. By creating an unparalleled forum for individual achievement and entrepreneurship, the American economy has grown strong.
America's tax policies must change with the times to encourage future prosperity by encouraging reinvestment and entrepreneurship rather than penalizing risk.
One issue Congressman Dreier has long worked on is the reduction of the capital gains tax. By taxing capital gains, people who save and invest are penalized. The federal government should concentrate on boosting productivity as well as wages. To reach this goal, Congressman Dreier introduced H.R. 1500, the Investment Tax Simplification Act of 2005. This legislation establishes a permanent and simplified 15 percent capital gains tax rate for individuals and corporations. Under the bill, the capital gains tax is eliminated for individuals in the 10 and 15 percent tax brackets.
He is not alone in the fight to reduce capital gains rates. Former Federal Reserve 
Chairman Alan Greenspan also consistently supported eliminating the capital gains tax. Chairman Greenspan argued that this tax “impede(s) entrepreneurial activity and capital formation.” Congressman Dreier also serves as co-chairman of the bipartisan, bicameral Zero Capital Gains Tax Caucus. The goal of this caucus is to explore capital gains reform and the beneficial effects it will have on capital formation and economic growth in our country. Hopefully Congress will soon be able to provide relief from this burdensome and counterproductive tax.
Federal policies, including our tax code, must support and encourage America’s 25 million small businesses. In 2005, Congressman Dreier supported passage of several bills, which President Bush signed into law, to boost small business entrepreneurship. This includes S. 5, the Class Action Fairness Act, which reduces frivolous class action lawsuits that currently cost U.S. small businesses $88 billion a year, and S. 256, the Bankruptcy Abuse Prevention and Consumer Protection Act, which cuts down on abusive and frivolous bankruptcy filings which hurt small businesses and the economy.
Congressman Dreier also supported House passage of a number of bills, which await Senate consideration, that will aid small employers. This includes H.R. 8, the Death Tax Repeal Permanency Act, to completely and permanently eliminate the death tax, which forces 1/3 of all small businesses to sell or liquidate a part of the business to pay for the death tax, costing jobs for American workers. Congressman Dreier also supported several Occupational Safety and Health Administration (OSHA) reform bills, to ensure that small business owners who make good faith efforts to comply with health and safety laws are dealt with fairly and equitably by OSHA.
