[Congressional Record Volume 149, Number 2 (Wednesday, January 8, 2003)]
[Extensions of Remarks]
[Page E44]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        JOB CREATION ACT OF 2003

                                 ______
                                 

                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                       Wednesday, January 8, 2003

  Mr. KNOLLENBERG. Mr. Speaker, today I have introduced the Job 
Creation Act of 2003. The country is now in its second year of economic 
growth, but we are not growing fast enough. We must continue to look 
for ways to continue and quicken our economic recovery.
  President George W. Bush recently announced his economic growth and 
jobs plan to strengthen the American economy by providing accelerated 
tax relief to every American paying income tax, encouraging job 
creation by giving small businesses incentives to grow, and helping 
displaced workers.
  This is a step in the right direction, but we must also address the 
numerous benefits that an elimination of capital gains taxes would have 
on our economy. The Job Creation Act would eliminate capital gains 
taxes for individuals.
  By cutting the capital gains tax, we create greater incentives to 
invest and start new businesses, which means more jobs available. In 
addition, a cut in the capital gains tax will almost certainly generate 
more revenue, as was the case when the tax was reduced in the early 
1960s and late 1970s.
  Furthermore, it is estimated that trillions of dollars are being held 
in investments such as stocks, bonds, and market funds to avoid the 
tax. Relief from the capital gains tax would induce people to profit 
from their investments, leading to the potential of ``unlocking'' 
hundreds of billions of dollars of stored up wealth.
  The elimination of the capital gain tax would also eliminate a 
complex and confusing portion of our tax code. Relief would enable 
people to better plan for retirement by knowing the true value of their 
investments without worrying about federal taxes.
  I am pleased to have introduced the Jobs Creation Act and look 
forward to working with my colleagues on this important issue.

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