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| SBE Council Makes Case for Cap Gains Permanency
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February 25, 2005
Washington, D.C. - The Small Business & Entrepreneurship Council (SBE Council) is publishing a series of reports that lay out the case for making key aspects of the 2001 and 2003 tax cuts permanent.
The first report, written by SBE Council chief economist Raymond J. Keating, focuses on the capital gains tax.
SBE Council President & CEO Karen Kerrigan observed: "The 2001 and 2003 tax cuts have been very important for entrepreneurs, small firms and their workforce, and the economy in general. However, the looming uncertainty about the future of these tax measures limits their full economic potential. It is important that the economy and small businesses not be hit with a series of tax increases in coming years. The 2001 and 2003 tax relief measures must be made permanent."
In the report, Keating lays out the various economic arguments regarding capital gains taxation, and notes the economic results when changes in the capital gains tax have been made. Keating writes: "Many oppose capital gains tax relief by hurling class-warfare charges, claiming that capital gains tax reduction only benefits the very wealthy. In reality, though, cutting the capital gains tax has widespread economic benefits." He adds: "Economic growth clearly has been influenced by capital gains taxes. Over the past century, there have been five instances of substantive cuts in the capital gains tax. In each case, the economy benefited."
The report - "Tax Cut Permanency Report #1: The Capital Gains Tax" - can be downloaded at SBE Council's website at http://www.sbecouncil.org/.
SBE Council can be contacted at 202-785-0238. For over ten years the SBE Council, a nonpartisan, nonprofit small business advocacy group headquartered in Washington, D.C., has been working to protect small business and promote entrepreneurship.
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