[Congressional Record (Bound Edition), Volume 149 (2003), Part 1]
[House]
[Page 231]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 AMERICAN DREAM TAX RELIEF ACT OF 2003

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Indiana (Mr. Pence) is recognized for 5 minutes.
  Mr. PENCE. Mr. Speaker, from the time I arrived in Washington, D.C., 
now fully more than 2 years ago, I pledged myself to my constituents in 
eastern Indiana to fight to renew the American Dream; that is that 
dream of every American, whatever their race, whatever their creed, 
whatever their color, that they might better themselves and better 
their families so that not only they but their posterity could enjoy 
more abundance in this country in every way, material and spiritual, as 
they pursue that dream.
  It is about renewing and restoring the American Dream, Mr. Speaker, 
that I was proud today to author and to drop into the hopper the 
American Dream Tax Relief Act of 2003. I am proud that this bill, filed 
as it is on the very first legislative day of the 108th Congress, is 
not only my work but the work of some 33 original cosponsors, including 
many distinguished leaders of this institution and chairmen of major 
committees.
  The American Dream Tax Relief Act, Mr. Speaker, is, quite simply put, 
an act that would dramatically reduce the taxes on capital gains in 
this country from their rate, which varies everywhere from 28 percent 
down to 8 percent, to a single flat capital gains tax rate of 10 
percent. The enthusiasm with which this was greeted by my colleagues in 
just a few short hours of trafficking the idea here on Capitol Hill has 
greatly encouraged me that this is an idea whose time has come.
  Mr. Speaker, I would offer to you that while the President of the 
United States, traveling as he did to the Economic Club of Chicago, did 
much this week to set the stage for recovery from recession, now is the 
time for us in this Congress to go beyond strategies for aiding those 
who are struggling with unemployment and layoffs, as we did earlier 
today, to go beyond even the President's thoughtful effort to bring the 
recession finally to a close. We need to begin to pursue, Mr. Speaker, 
economic policies that, in sum total, will explode the American Dream 
for an unprecedented generation of our citizens.
  Only a significant reduction in taxes on capital will succeed in 
unleashing the entrepreneurial energy that is buried in the morass of 
high taxes and overregulation. Reduced taxes on capital will enable 
working families to save for the future or use invested funds for 
immediate financial obligations without fear of excessive tax 
penalties. American families, not the government, will have a greater 
power, Mr. Speaker, to decide what it is they do with their money. And 
for all of our great wisdom in this Chamber, Mr. Speaker, it seems like 
every time we give the American people more power over their own money, 
the Nation and even the coffers of government benefit.
  Now, some will argue as we proceed forward with this tax relief 
measure that we cannot afford this in these times of Federal red ink 
and deficits and a growing national debt. But the truth is, Mr. 
Speaker, that the last time the capital gains tax was cut, 1997, under 
the Clinton administration, prior to the cut, at 28 percent, the 
capital gains tax generated some $62 billion per annum to the Federal 
Government. Within 2 years following the 8 percent cut in the capital 
gains tax, it became a program that generated $109 billion to the 
Federal Government.
  It is one of those ironies in a dynamic model of economics that when 
we lower the tax rate, we actually encourage entrepreneurism, encourage 
investment, and encourage people to move dollars out of passive assets 
into productive assets. And, in so doing, not only do the American 
people win, but the government wins with higher revenues.
  This has been the unflagging experience of the capital gains tax when 
President Kennedy reduced it, when President Reagan reduced it, and 
even when President Clinton signed a reduction in the capital gains 
tax. As President John F. Kennedy said, not only is it a good thing for 
government, but in every real sense it is great for the American 
people.
  Some will say it benefits the rich. And to that, I confess, it will. 
It will benefit the wealthy in this country. It will benefit the middle 
class in this country. It will benefit working Americans struggling to 
start their own small businesses and enterprises. It will benefit every 
single American. As President John F. Kennedy said so memorably so long 
ago of the capital gains tax reduction he advocated, a rising tide 
lifts all boats.
  By reducing the rate at which we tax capital, we will unleash an 
energy in this country that will raise the tide of economic prosperity, 
and I am proud to author this American Dream Tax Relief Act of 2003.

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