Eliminating The Capital Gains Tax

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Combined with indexation, which is
,
reducing the capital gains tax by any amount would be a vital pro-growth step
taken by Congress. However, given the fickle and high risk nature of
investments and entrepreneurships, and the importance of maintaining a
competitive economy in a global environment, capital gains should be exempt from
taxation altogether. A zero percent capital gains tax would attract
entrepreneurial risk taking, which is very important to economic growth. It
would entice wealthy investors to invest in a certain enterprise, which in small
numbers would immensely increase the economic growth in the United States. In
the Wall Street Journal the U.S. Commission on civil rights said, "Reducing the
tax on capital gains effectively increases the flow of financial 'seed corn' to
budding entrepreneurs." Also, from a global perspective, the United States has
one of the biggest capital gains tax rate. Depending on inflation, sometimes
the United States has the largest ...

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