[Congressional Record Volume 154, Number 156 (Sunday, September 28, 2008)]
[Extensions of Remarks]
[Page E2096]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              MIDDLE CLASS INVESTOR RELIEF ACT, H.R. 7123

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                         HON. MARK STEVEN KIRK

                              of illinois

                    in the house of representatives

                       Friday, September 26, 2008

  Mr. KIRK. Madam Speaker, a year ago, the subprime crisis surfaced. 
This month, we see the results of inordinate and mis-regulated 
financial risk-taking. The regulator for Fannie Mae and Freddie Mac put 
these mortgage giants into conservatorship. The Treasury and Federal 
Reserve intervened to keep the largest U.S. insurer out of bankruptcy. 
Twice in 1 week, the U.S. stock market posted 1-day drops not seen 
since two airplanes were flown into the Wall Street's World Trade 
Center buildings. Congress is taking swift action to protect the 
capital markets that keep our economy going. We must not forget the 
small investor.
  Middle class families are seeing significant losses in their 
investments weaken investor confidence, consumer spending and the 
future growth of our Nation's economy. Stock investors have watched the 
values of their portfolios drop more than 20 percent this year, and 
homeowners fear that continuing mortgage market volatility will hamper 
recovery of the real estate markets--down 30 percent in some regions of 
the United States. Some middle class Americans nearing retirement may 
need to work additional years to earn back their stock losses.
  With continuing economic uncertainty, we must bring relief to middle 
class families while boosting investor confidence in an uncertain stock 
market. Today, I am introducing the Middle Class Investor Relief Act, 
increasing the maximum annual capital loss a taxpayer can take from 
$3,000 to $20,000.
  Current tax law is asymmetrical with regard to taxing capital gains 
and writing off capital losses. Long-term gains are taxed at 15 percent 
while capital loss write-offs are capped at $3,000 per year. An 
individual who lost more than $3,000 in the stock market could take 
years to rebuild his or her holdings. The Middle Class Investor Relief 
Act will correct the asymmetry of current tax law and help middle class 
Americans recover losses and rebuild their portfolios.




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