Judd Gregg: “I introduce, with Senators Ford, Hagel, and Graham a sliding-scale capital gains proposal, the Long-Term Investment Act…”

“I introduce, with Senators Ford, Hagel, and Graham a sliding-scale capital gains proposal, the Long-Term Investment Act of 1997. Given the sobering demographics associated with the impending aging of the baby-boom generation, it is more important than ever that laws enacted by Congress promote long-term capital investment and savings by all Americans. Central to this objective is a reduction in the current capital gains tax rate on long-term investments. A capital gains reduction was agreed to in principle in the budget agreement. We have a proposal that we believe embodies a fundamental change in tax policy at less cost. Over the next 10 years, S. 2 will cost $129 billion, while Gregg/Ford will cost $45 billion. We have developed a plan that would encourage long-term investments through a sliding-scale capital gains rate reduction. The plan would encourage individuals to hold assets over a number of years, allowing no reduction in the current rate on assets held for less than 1 year, with increasingly larger deductions to a maximum 50 percent reduction for investments held more than 8 years. This sliding-scale plan encourages investments that will benefit long-term savings and capital--such as providing for a child's education or retirement income.”