[Congressional Record Volume 148, Number 129 (Friday, October 4, 2002)]
[Extensions of Remarks]
[Page E1754]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    UNREALISTIC CAPITAL GAINS TAXES

                                 ______
                                 

                          HON. JOHNNY ISAKSON

                               of georgia

                    in the house of representatives

                       Thursday, October 3, 2002

  Mr. ISAKSON. Mr. Speaker, the American economy is sluggish, the Stock 
Market is at a six year low, and consumer confidence is declining. All 
this is happening in an environment of low inflation, historically low 
interest rates, and unemployment rate under six percent. What is wrong?
  Our problem is capital held hostage by oppressive and unrealistic 
capital gains taxes. Today in America billions of dollars sit idle that 
would be otherwise available for investment were it not for capital 
gains taxes. Average Americans have mature stock, bond or real estate 
investments they would love to sell and reinvest their gain. This 
reinvestment would stimulate the economy, improve the stock market, and 
create jobs.
  We should join the rest of the world and reduce or eliminate capital 
gains taxes. Such a suggestion raises the ire of many liberals who 
immediately would say such a cut would only help the rich, raise the 
deficit, and hurt the poor. I don't believe that for a moment. The 
facts are that 70 percent of the American people are investors not just 
the rich. Deficit increases would be minimal since current revenue 
projections from capital gains are low due to the economy. The poor 
would benefit because the economy would improve and job growth would 
begin.
  Mr. Speaker, let us free the capital held hostage by capital gains 
taxes. I am so confident that a repeal of the capital gains tax would 
immediately stimulate the economy, create jobs and restore consumer 
confidence, I would be willing the sunset the repeal in three years. 
Why, because I believe the success would be so dramatic, Congress would 
never allow the capital gains tax to return.

                          ____________________