[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 464 Introduced in House (IH)]

<DOC>






114th CONGRESS
  1st Session
H. RES. 464

 Affirming that private equity plays an important role in growing and 
 strengthening United States businesses throughout all sectors of the 
 economy and in every State and congressional district and that it has 
     fostered significant investment in the United States economy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 6, 2015

 Mr. Conaway (for himself, Mr. Allen, Mr. Carter of Texas, Mr. Collins 
 of New York, Mr. Babin, Mrs. Blackburn, Mr. Boustany, Mr. Farenthold, 
Mr. Flores, Mr. Franks of Arizona, Mr. Gohmert, Mr. Hudson, Mr. Hurt of 
  Virginia, Mr. LaMalfa, Mr. Lamborn, Mr. Lucas, Mr. Luetkemeyer, Mr. 
  Marchant, Mr. McHenry, Mr. Mooney of West Virginia, Mr. Olson, Mr. 
 Pearce, Mr. Rokita, Mr. Salmon, Mr. Sessions, Mr. Smith of Texas, Mr. 
 Stivers, Mr. Weber of Texas, and Mr. Young of Indiana) submitted the 
 following resolution; which was referred to the Committee on Ways and 
 Means, and in addition to the Committee on Financial Services, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                               RESOLUTION


 
 Affirming that private equity plays an important role in growing and 
 strengthening United States businesses throughout all sectors of the 
 economy and in every State and congressional district and that it has 
     fostered significant investment in the United States economy.

Whereas private equity and growth capital is an industry that partners with 
        pensions, foundations, and endowments to invest over the long term in 
        promising companies in need of a turnaround and poised for growth;
Whereas private equity invested more than $522,000,000,000 in United States-
        based businesses last year and more than $4,577,000,000,000 over the 
        past 10 years;
Whereas the cornerstone of the private equity business model is growing and 
        strengthening companies over the long term to create stronger businesses 
        and return value to investors;
Whereas private equity partnerships help bring together management expertise 
        with investment capital;
Whereas low taxes on long-term capital gains income is a fundamental part of 
        fostering long-term investment in the United States, and private equity 
        relies on long-term capital gains income to incentivize investment;
Whereas private equity funds invest in a diverse set of industries and sectors 
        of the United States economy, including manufacturing, health care, 
        information technology, business services, energy, and others;
Whereas private equity investment drives economic growth throughout the Nation 
        and helps United States businesses compete globally;
Whereas more than 24,000 private equity-owned businesses are based in the United 
        States and employ approximately 11,300,000 people in the United States;
Whereas most private equity investment spans between 3 and 7 years;
Whereas public pension funds' median 10-year annualized returns on investments 
        in private equity outperform all other asset classes, including public 
        equity, real estate, and fixed income;
Whereas policymakers should treat all similarly situated partnerships, such as 
        private equity, venture capital, and real estate, equally;
Whereas tax policy should incentivize capital access, investment, and 
        innovation;
Whereas appropriately taxing capital gains income is fundamental to many 
        business partnerships, including private equity partnerships;
Whereas the key criterion for capital gains treatment is if the taxpayer has 
        made an entrepreneurial investment of capital, expertise, or both in a 
        capital asset;
Whereas private equity general partners develop business plans, hire and manage 
        senior corporate executives, and participate in the ongoing corporate 
        governance for the firms their funds invest in;
Whereas the gains of a private equity fund are a direct result of the 
        significant expertise invested by the general partners and these gains 
        have always been appropriately taxed as capital gains income for all 
        partners;
Whereas mischaracterizing carried interest income as ordinary income will 
        discourage the formation of private equity partnerships and reduce the 
        entrepreneurial risk-taking necessary to build businesses; and
Whereas private equity firms are essential to a healthy, growing United States 
        economy and private equity investments can unlock economic value, 
        transform industries, and put the Nation back to work: Now, therefore, 
        be it
    Resolved, That--
            (1) the House of Representatives affirms that private 
        equity plays an important role in growing and strengthening 
        United States businesses throughout all sectors of the economy 
        and in every State and congressional district and that it has 
        fostered significant investment in the United States economy; 
        and
            (2) it is the sense of the House of Representatives that 
        Congress should maintain normative tax policy that carried 
        interest income resulting from the sale of a capital asset is 
        capital gains income.
                                 <all>