[Congressional Record (Bound Edition), Volume 152 (2006), Part 2]
[Senate]
[Pages 1797-1798]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            ECONOMIC GROWTH

  Mr. ENSIGN. Mr. President, my home State of Nevada is a State that is 
friendly to business. We pride ourselves on the opportunities that 
businesses have to thrive and grow in our State, while providing an 
excellent quality of life for employees and their families. As chairman 
of the Republican High Tech Task Force, I come into contact with many 
companies, all who hear my pitch for why they should expand into 
Nevada. But as good as businesses have it in Nevada, or if they move to 
Nevada, what we do here in Washington, DC will ultimately help make or 
break their success. And when businesses fail to thrive, so does our 
economy.
  Investors in a business in California may be sitting down today to 
determine whether their 2-year plan includes expanding to Nevada with, 
for instance, a manufacturing plant that will employ 200 people. They 
are excited about the possibilities, but there are too many blank 
spaces when it comes time to crunch the numbers. Weighing heavily in 
their calculations, they are concerned that the current dividends and 
capital gains tax rates will expire in 2008. Because of the uncertainty 
of those critical factors, they are leery about the prospects.
  They will make that decision about expanding and reinvesting in their 
businesses today. Not next year and not the year after that. Today. But 
we have tied one hand behind their back. We are standing in the way of 
their growth and potential if we do not extend the dividends and 
capital gains tax rates. They need that assurance today so that they 
can expand, create jobs, and help our economy continue to grow.
  The economic growth we have seen since lower tax rates were enacted 
in the Jobs and Growth Tax Relief Reconciliation Act of 2003 is exactly 
why we must extend the rates. Dividend distributions are up. Corporate 
investment in new property, plant, and equipment has surged. The 
economy has grown for 10 consecutive quarters.
  These are impressive results, and they are not just about business 
succeeding. The impact is being felt by families, seniors, and low-
income individuals. With more than 50 percent--50 percent--of American 
households owning stocks or mutual funds, the reach of dividends and 
capital gains rates is significant. Today, many senior citizens rely on 
dividends and capital gains to supplement their Social Security. And 
lower and middle-income families are benefiting as well.
  Without this extension, our economy will take a hit, and so will 
working families across Nevada. Instead of closing doors on them, we 
need to create

[[Page 1798]]

certainty in our Tax Code and opportunity for our economy. Although the 
tax rates don't expire until 2008, we don't have the luxury of waiting 
2 years to extend this. By then, too many investors and businesses will 
have made their decisions not to grow, not to build, and not to hire. 
It will be too late.
  We are part of a global economy that is constantly moving and 
changing. If we don't allow investment to fuel our competitiveness and 
innovation, we will pay the price, and so will future generations.
  It is not just one business in California deciding whether to move to 
Nevada, and it is not just the 200 employees who could have found work 
there; it is about investors and companies across our Nation and it is 
about working families throughout this country, and it is about the 
future of our economy.
  There aren't many factors that Congress controls when it comes to 
capital and business investment. This is one of them, and we must join 
together to ensure continued economic growth.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Wyoming is recognized.

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