Our economy is currently facing uncertainty that has created hardship for many working families. As we address today’s challenges, I believe we must look at what has been the source of our strength throughout our history. While we have faced economic ups and downs, our economy has long been 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. We will weather our current challenges and revitalize our economy by empowering America’s entrepreneurial spirit and continuing to reduce the tax and regulatory burdens that inhibit growth.
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 be modernized to reinvigorate our economy and encourage future prosperity through investment and entrepreneurship rather than penalizing risk.
Congressman Dreier believes that Americans deserve a simpler and fairer way to keep more of their hard-earned money, which is why he introduced H.R. 5105, the Fair and Simple Tax (FAST) Act. This bill creates a new, single page tax form that reduces taxes on working Americans by creating three new tax brackets. Click here for more information on the FAST Act.
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 included provisions in the FAST Act to reduce the individual capital gains tax rate from 15% to 10% and index the individual capital gains rate for inflation.
Congressman Dreier 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 also support and encourage America’s entrepreneurs. Unfortunately, America’s corporate tax rate is the second highest in the industrialized world. Such a high rate of taxation only encourages American jobs to be sent overseas. The FAST Act would address this disparity and provide incentives to create more jobs at home by reducing the top corporate tax rate from 35 percent to 25 percent. The FAST Act also would help ensure that America’s businesses remain competitive with their foreign counterparts by permanently extending the Research and Development Tax Credit.
In 2005, Congressman Dreier supported passage of several bills, which the President 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.
