[Congressional Record Volume 144, Number 136 (Friday, October 2, 1998)]
[Extensions of Remarks]
[Page E1892]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTRODUCTION OF SMALL BUSINESS INVESTMENT INITIATIVE

                                 ______
                                 

                           HON. JENNIFER DUNN

                             of washington

                    in the house of representatives

                        Friday, October 2, 1998

  Ms. DUNN. Mr. Speaker, the American economy is moving quickly from 
one dominated by large corporations to one whose growth is fueled by 
emerging entrepreneurial high-growth companies. Entrepreneurial 
companies are today's leaders in job creation, technological 
innovation, and international competitiveness. America's future 
economic well-being lies in the hands of today's emerging companies and 
the central organizing principle for our nation's economic policy 
should be entrepreneurship.
  Over the course of many years, a complex fabric of public policies 
have created the environment in which entrepreneurial firms compete. 
Due to the fact that the public policy needs of this community have not 
been articulated in a united fashion or widely understood by policy 
makers, however, the basic ``building blocks'' used to enhance economic 
growth have not been properly constructed. I rise today to begin to lay 
the foundation for this policy and ensure that the engine that drives 
this economy has access to the fuel it needs to thrive: capital.
  Entrepreneurs are synonymous with jobs. Between 1980 and 1990, U.S. 
private sector employment grew by 19 million jobs, but employment in 
the Fortune 500 firms dropped by three million jobs. In other words, 
job creation outside of the Fortune 500 companies rose by 22 million. 
By creating an environment for entrepreneurship to thrive, we also 
ensure that ``spin off'' companies develop to foster even greater job 
creation and technological development. Nowhere is this more clearly 
demonstrated than in the biotechnology and computer industries that 
have grown up in my home state of Washington.
  The bill I am introducing today will ensure that these new capital-
intensive small businesses will have the money they need to create 
innovative technologies and create jobs. By raising the Section 1202 
definition of small business from $50 million to $300 million and 
raising the capital gains exclusion from 50% to 75%, we can create a 
climate in which individual investors are rewarded for their risky 
investment and entrepreneurs have the tools they need to succeed.
  Capital gains taxes are one of the nation's primary obstacles to job 
creation and technological innovation. anything to reduce the effective 
or actual rate on capital gains taxes will help put more money in the 
hands of our nation's most enterprising citizens and lift the standard 
of living for everyone. In addition, this proposal is completely 
consistent with Speaker Gingrich's effort, of which I am a supporter, 
to reduce the broad-based capital gains rate to 15%.
  Over the course of the next two years, I expect a healthy debate over 
tax policy. It is my hope that this bill will put the primary focus of 
this debate where it ought to be: removing incentives to economic 
freedom and entrepreneurship.
  I urge my colleagues to support this effort.

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