Dreier Joins President in Calling for Quick Action on Economic Stimulus

January 7, 2003

WASHINGTON -Saying the President's call for economic stimulus is "a critical starting point for creating jobs and increasing investment in the economy," Congressman David Dreier (R-San Dimas), applauded President Bush's speech today announcing an economic stimulus plan. Congressman Dreier noted that he had a proposal to stimulate economic growth by creating incentives for immediate investment in capital markets. As the President was making his speech in Chicago, Dreier was introducing the Investment Tax Incentive Act at the start of the 108th Congress.

"As the President said today, we need to get people back to work and soon," Dreier said. "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. Today I 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."

Dreier introduced today the Investment Tax Incentive Act, which 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 stock market once again. At its introduction, the legislation enjoyed strong bipartisan support.

"In today's economy, over 50 percent of the American people are corporate owners," Dreier said. "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. My proposal will help Americans from all walks of life build a better future for themselves, their families and their businesses."