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2006-1-10-15-56-3-23436
In a statement today, Treasury Secretary John Snow emphasized the impact of reduced taxes on dividends and capital gains when it comes to business investment, economic growth and job creation. Click here to see larger image of graphic, left. Snow said that: The Jobs and Growth Act of 2003 was especially effective at encouraging investment because it lowered the cost of capital – the lifeblood of a free market economy. Business investment literally turned around overnight when those tax cuts took effect, ending nine quarters of investment dearth and spurring ten quarters – so far – of outstanding business investment, which has then led to growth and job creation.
Raising taxes on capital carries the risk of reversing this trend in business investment, and this is not an option in my eyes, or in the eyes of the President. On the contrary, making the President's tax cuts permanent is essential to continuing a strong, positive trend in business investment and in our economy overall.
With more Americans working than ever before, more Americans owning stock than ever before and with federal tax revenues at an all-time high to boot, there is no reason why Congress should not see the benefits of furthering tax relief by making the tax cuts permanent. And I know the President and I will do everything we can to ensure Congress to moves forward in doing so.
REPORTS
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