DON'T PUNISH ENTREPRENEURS
July 23, 2007
Countless Americans have benefited from investment partnerships. But now they are under attack by tax-and-spend politicians who have their sights on American entrepreneurship and retirement savings, says Rep. Eric Cantor (R-Va.), the chief deputy minority whip.
At issue is the Levin-Rangel bill, which would effectively raise taxes on investment partnerships by 133 percent. Allowing this to happen would lead to serious consequences for job creation and economic growth, says Cantor:
- Private equity partnerships have become an important source of capital for low-income housing, energy exploration and medical innovation, not to mention the turnaround of struggling companies.
- These groups invest expertise and sweat-equity to reinvigorate troubled companies and build new ones. Private equity alone created about 600,000 jobs from 2000 to 2003.
Further, some argue that this bill only targets the super rich; this is far from the truth, explains Cantor:
- It would harm millions of ordinary Americans whose pensions and jobs increasingly rely on returns from these investment partnerships.
- Washington state's employee pension fund has earned $9.71 billion, or approximately $26,000 per worker, over its 25 years investing in partnerships.
- Raising taxes on partnerships is a clear attack on the pensions of every teacher, firefighter, police officer and civil servant whose pension is tied to these funds.
Levin-Rangel attacks the most innovative and energetic part of our economy. In an increasingly challenging global community, America must stay competitive. Congress must not tax success and destroy job creation, which is why Cantor opposes the Levin-Rangel proposal.
Source: Eric Cantor, "Opposing view: Don't punish entrepreneurs," USA Today, July 23, 2007.
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