Dreier, Bipartisan Colleagues to Restart Zero Capital Gains Tax Caucus

March 7, 2002

WASHINGTON, DC -- Saying a significant reduction of the capital gains tax would "simultaneously do wonders for our economy and beef up the federal coffers," Congressman David Dreier, Chairman of the House Rules Committee, joined a group of bipartisan, bicameral colleagues today to restart the Zero Capital Gains Tax Caucus. Congressman Ralph Hall (D-TX) and U.S. Senators Richard C. Shelby (R-AL) and Zell Miller (D-GA) were also in attendance.

"We know we need economic growth, and we know a significant reduction of the capital gains tax will create it," Dreier said. "As we work to end this recession, we should look very seriously at doing just that. It would give our economy a significant shot in the arm, all the while helping us stay away from deficits. Reduction of this unfair, unnecessary tax has been shown to increase federal revenues because it allows the economy to expand and grow at a faster pace."

The goal of the Zero Capital Gains Tax Caucus is to explore capital gains tax reform and the beneficial effects it will have on capital formation and economic growth in our country. The bipartisan and bicameral caucus will serve as a forum for respected economists and policy experts to discuss various capital gains tax reform measures. The Caucus plans to meet later this month to hear leading policy experts discuss the effects of a reduction of the capital gains tax.

Dreier, who is the author of H.R. 15, The Capital Gains Tax Reduction Act of 2001, noted that there was strong bipartisan support for the idea. His bill, which would reduce the personal cap gains rate to 15% and the corporate rate to 28%, has 21 bipartisan co-sponsors.

"There's obviously bipartisan, bicameral support for reducing the capital gains tax," Dreier said. "Chairman Greenspan has said we should reduce it. So what are we waiting for? I hope the reformation of this important Caucus will generate a real debate on the merits of our ideas."