My commitment is to do everything in my power to see that government does not shackle the American opportunity to create and produce. Here are seven steps America should take to improve our ability to compete in the world. It is the fuel that allows existing businesses to expand and entrepreneurs to put their new ideas in action. Unfortunately, our capital gains tax is higher than that of nearly all our major trading partners. Most capital gains in the United States are taxed above 20 percent.
Japan averages a five percent rate.
Germany imposes no capital gains tax at all on assets held for more than six months. I've long supported a permanent cut in the capital gains rate as an essential step toward making our country more competitive. The American Competitiveness Act would cut the capital gains tax in half on assets held for two years or longer and eliminate the tax entirely on assets held for five years or longer. The plan, thus, encourages the long term holding of assets. The American Competitiveness Act creates a special incentive for investing in start-up companies through a 50 percent exclusion for capital gains derived from initial stock offerings that are held for two years.