Congressman Chuck Fleischmann introduced the "Growing Jobs Through Capital Act of 2011" today. This legislation will reduce the capital gains tax to 0% for two years.
"In this time of economic need, it only makes sense to return as much capital as possible to those whose money it already is in the first place. I believe that you will see individuals and businesses putting money back into the economy, back into their businesses and hiring more workers. This is exactly what our economy needs at this moment. More capital in the hands of those who are capable is the solution, not higher taxes," Fleischmann said.
A January 2008 National Center for Policy Analysis study of the 2003 reduction in the capital gains tax found:
* "There was a sizable 'unlocking effect' from the lower tax rate, meaning that investors voluntarily sold stock and other assets at a much higher volume once the tax rate was reduced. The amount of capital gains realizations more than doubled, from $301 billion in 2002 to an estimated $683 billion in 2006."
* "The capital gains tax cut did not only benefit wealthy Americans; more than half of all tax filers with capital gains had incomes of less than $50,000 in 2005 and more than two-thirds had incomes of less than $100,000."
Reducing the capital gains tax to 0% is one of the seven points Congressman Fleischmann put forth in his "Less Government, More Jobs" plan.