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On The Issues

H.R. 1500
The Investment Tax Simplification Act of 2005 

See Also:

Bill Summary
Section-by-Section
Floor Statement


Letters of Support

California Healthcare Institute

Real Estate Roundtable

Americans for Tax Reform

The Silver Institue

National Venture Capital Association

The Financial Services Roundtable


Zero Capital Gains Tax Caucus

The key to strong economic growth is to encourage greater capital investment. In 2003, we took an important step forward by reducing the capital gains tax for individuals to 15 percent. Since then, the economy has grown at an average of 4.5 percent, business investment has increased by $200 billion, financial markets are up $2 trillion and 3 million new jobs have been created. However, the 15 percent capital gains tax rate is scheduled to expire in just four short years.

The complex and confusing capital gains tax rates create a lock-in effect, a barrier which discourages investment, halts entrepreneurship and stifles job creation. That is why I introduced H.R. 1500, the “Investment Tax Simplification Act of 2005,” which will help knock down this barrier and enhance the free flow of investment capital in the economy by establishing a permanent and simplified 15 percent capital gains tax for individuals and corporations. The capital gains tax is eliminated for individuals in the 10 and 15 percent tax brackets.

Making permanent and simplifying the capital gains tax will enable established companies and start-up firms to make more efficient use of their working capital, allowing them to invest in business initiatives that provide good jobs for American workers and deliver new and innovative products and services to the world.