Mar 07 2002

ZERO CAPITAL GAINS TAX CAUCUS

Statement of Senator Richard C. Shelby

WASHINGTON, DC -- U.S. Senator Richard C. Shelby today announced the Zero Capital Gains Tax Caucus. The caucus will be co-chaired by Senator Shelby, Senator Zell Miller (D-GA), Congressman David Dreier (R-CA) and Congressman Ralph Hall (D-TX).

The goal of the Zero Capital Gains Tax Caucus is to explore capital gains tax reform and the beneficial effects it will have on capital formation and economic growth in our country. The bipartisan and bicameral caucus will serve as a forum for respected economists and policy experts to discuss various capital gains tax reform measures.

Senator Shelby said, "the goal of this caucus is to explore capital gains tax reform and the beneficial effects it will have on capital formation and economic growth in our country."

"The co-chairs of the bipartisan, bicameral Zero Capital Gains Tax Caucus are myself, Senator Miller and Representatives David Dreier and Ralph Hall. In addition, over twenty House and Senate members have joined the caucus in recent months.

"This caucus will serve as a forum for respected economists and policy experts to discuss various capital gains tax reform measures. The purpose of these discussions is to build support for eliminating, or at the very least, reducing the tax on capital gains. I am a strong believer of capital gains tax reform.

"According to the Congressional Budget Office, capital gains receipts account for approximately 3% of total federal revenue. I believe that the economic benefits of eliminating the capital gains taxes would offset any loss in federal revenue. Even a reduction in the capital gains rates would have a positive effect on our economy.

"Capital gains tax reform is one of the most effective things Congress can do to boost the economy. I am excited about the potential for our caucus and I look forward to working with my colleagues on both sides of the aisle on this important issue."


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