Dreier Introduces Bill to Boost Economic Growth

April 7, 2005

WASHINGTON, DC - Congressman David Dreier (R-CA), Chairman of the House Rules Committee, introduced legislation yesterday aimed at encouraging greater capital investment and job creation in the American economy. The Investment Tax Simplification Act, H.R. 1500, builds on the successful tax relief approved in 2001 and 2003.

“The key to strong job growth is to encourage greater capital investment in the economy," Dreier said. "In 2003, the reduction in the capital gains tax to 15 percent had a tremendous positive impact. Since then, businesses have increased capital spending by $200 billion and created 3 million new jobs. Unfortunately, the 15 percent capital gains tax is scheduled to revert back to a higher rate of 20 percent in just four short years.”

In order to continue these important trends, Congressman Dreier introduced H.R. 1500, the Investment Tax Simplification Act, to establish a permanent and simplified 15 percent capital gains tax for individuals and corporations. The bill also eliminates the capital gains tax for individuals in the 10 and 15 percent tax brackets.

“Clarifying the long-term tax treatment of capital gains will enhance the free flow of capital in the economy, providing much needed capital for business expansion and job growth,” Dreier said. He also noted that the legislation will enhance Americans’ efforts to save and invest. “Today, over 50 percent of Americans own assets dependent on financial markets. Making permanent the 15 percent capital gains tax will bolster the investment holdings of the ‘Investor Class’, helping them pay for their children's education, buy their first home or plan for retirement. And eliminating the capital gains tax for lower income Americans will provide them with greater opportunities to attain financial stability and build wealth.”