As the debate for an economic stimulus package gains momentum, U. S. Sen. Richard C. Shelby (R-Ala.) today called on Congressional leadership to consider adding capital gains tax relief to any package which may eventually be brought before Congress.
In a bipartisan letter to Senate Majority Leader Daschle (D-S.D.), Senate Minority Leader Trent Lott (R-Miss.), Speaker of the House Dennis Hastert (R-Ill.) and Minority Leader Dick Gephardt (D-Mo.), Shelby stressed the economic benefits of adding capital gains tax relief. Shelby argued that given the current economic climate, a capital gains rate reduction would provide an incentive for Americans to save and invest, providing business the capital they need in order to expand and grow. By creating a stronger economy, Shelby explained, a rate reduction would benefit all Americans in the form of more jobs, higher wages and greater job security.
"At this crucial time, our tax policy must encourage long term savings and investment," said Shelby. "Now more than ever, we must turn back the tide of unwise tax policy that stifles economic growth. It has been well-documented over the course of the last forty years that when capital gains are reduced there has been an increase in federal revenue. Lowering taxes on capital gains will encourage greater capital investment, create jobs and increase job security and wages."
Sen. Shelby's letter to the leadership was also signed by Sen. Zell Miller, Sen. John Ensign, Rep. Terry Everett, Rep. David Dreier, Rep. Ralph Hall, Rep. Robert Ehrlich, Rep. Bob Schaffer, Rep. Christopher Shays, Rep. Porter Goss and Rep. Phil English.