From U.S. Congressman Scott Garrett (R-NJ):
Today, I participated in a panel with some of America’s top economists and business leaders on reducing our corporate capital gains rate to spur long-term economic growth. I am the author of the Economic Growth Act, an economic stimulus package which includes a simplified capital gains tax structure in which the corporate rate would be cut to 15%. Such a proposal would help American businesses retain employees and create new jobs.
In order for the U.S. to obtain long-term economic stability and spur economic growth, we need commonsense tax policies that help American businesses. The current corporate capital gains rate is 35%, more than double the individual rate. By decreasing the corporate rate, companies will be encouraged to sell unnecessary, money-draining assets, unleashing resources, creating jobs, and boosting American competitiveness. A high corporate capital gains tax rate drives investment dollars oversees where the rates are dramatically lower, stunting domestic economic development. Even France and Germany have recently passed laws to exclude 95% of corporate capital gains from taxation.
The Economic Growth Act also provides for:
Full, immediate Section 179 expensing, Reduced corporate tax rate, down from 35% to 25%, and End to capital gains tax on inflation.
Every time we’ve cut the capital gains rate, our economy has benefited – in 1978, 1981, 1997, and 2003. Cutting the corporate tax rate helps U.S. businesses retain employees and create jobs.
NAM President John Engler will be on Bloomberg TV tonight at 10 p.m. Eastern (following Tom Ridge), discussing today’s forum.
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