William Bryan: “I supported this compromise legislation in the Senate Finance Committee, and I intend to support its passage on the…”

“I supported this compromise legislation in the Senate Finance Committee, and I intend to support its passage on the floor as well. While there are many aspects of this legislation which I believe could be improved, I applaud Chairman Roth for his efforts to produce a bipartisan, consensus bill that the great majority of the members of the committee could support. One of the areas where I believe the bill does not go far enough in correcting flaws in the House Ways and Means bill, however, relates to the treatment of investment in real estate. Since 1963, so-called real estate depreciation recapture resulting from straight line depreciation has been provided the same tax rate as other forms of capital gains. Under current law, this rate is 28 percent. Under the House Ways and Means bill, however, an unfair differential is created between the general capital gains rate, which is capped under the bill at 20 percent, and the tax rate applied to depreciation recapture, which is set at 26 percent. Many members of the Senate Finance Committee expressed serious concerns with this inequitable treatment of real estate investment, and significant efforts were made during the committee's consideration of this bill to provide equal treatment for depreciation recapture.”