George H.W. Bush: “We have proposed, maybe you missed it, in our proposal we have before the Congress right now an investment tax…”

“We have proposed, maybe you missed it, in our proposal we have before the Congress right now an investment tax allowance. The ITC, itself, what you call investment tax, is terribly expensive. I think the revenue loss estimates were something like $250 billion. So, we couldn't do that and fit it into our budget plan without a tax increase, which I would like to firmly avoid and I'm determined to avoid. Investment tax allowance is what you might more appropriately call more rapid depreciation which will stimulate the kind of investment you're talking about. The capital gains cut, I am absolutely convinced, will stimulate jobs and stimulate investment, too. It worked under the Steiger amendment in 1978. I think it would have a very salutary effect. And it isn't what some of the opponents call it, a tax break for the rich. It's going to create jobs. It's going to create people taking more risks. So, look at how it worked in '78. And I think you'll find that this combination of these two things really will stimulate the economy. And what's happened, I send this seven-point--they're all stimulatory tax provisions--say to the Congress, ``Pass it by March 20th.'' They go in behind closed doors, beat it on a straight party-line vote, including this investment tax allowance, ITC type of thing, and come out and say, ``Well, what we've got to do is redistribute the wealth by increasing taxes.'' I do not think that's what the American people want, and I'm going to fight for this growth package. I'm not going to give up on it. I think we can make some headway in the Senate and in the House floor. But I'm not sure; we may not agree on a capital gains. You take a look at this ITA, this tax allowance, this stimulation; I think you'll find it's good. Yes, sir? Federal Budget”