[Congressional Record Volume 141, Number 35 (Friday, February 24, 1995)]
[Extensions of Remarks]
[Page E437]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              THE SAVINGS AND INVESTMENT LIBERATION BILLS

                                 ______


                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                       Friday, February 24, 1995
  Mr. CRANE. Mr. Speaker, today I introduce a package of three bills 
designed to give Americans the freedom to invest and save, without 
interference from the IRS. Our current tax code acts as an obstacle for 
individuals to do what they have been counseled to do by their parents 
for generations--save and invest.
  A study by the Tax Foundation revealed that effective tax rates on 
income from savings and investment are substantially higher than the 
effective tax rates on income from wages. As a result, the tax burden 
falls heaviest on those who earn a greater portion of their income from 
savings and investments--namely entrepreneurs and senior citizens. As a 
consequence, these high tax rates actually discourage Americans from 
saving and investing.
  Again according to the Tax Foundation, the current estate laws have 
similar negative effects in the market. Amazingly, the current Federal 
estate taxes have the same punishing effect on Americans as doubling 
income tax rates.
  As a member of the Ways and Means Committee, I am attempting to put 
some rationality back in the tax code, and as part of the effort to 
achieve fundamental reform of the code, I am introducing a package of 
three bills to do the following:
  1. Eliminate dividend and interest taxes on individuals;
  2. Repeal estate and gift taxes and the tax on generation-skipping 
transfers; and
  3. Repeal the capital gains tax on individuals.
  It is high time we stopped punishing those who save and invest. A 
typical taxpayer who chooses to save is taxed several times on the same 
dollar of earned income under the present system. As a result, savings 
and investment rates in the United States are among the lowest of the 
world's major industrial powers. Under this legislative package, 
taxpayers will finally be set free from these redundant taxes.
  I encourage my colleagues to support these bills for the benefit of 
their constituents.


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