IV 
114TH CONGRESS 
1ST SESSION 
H. RES. 464 
Affirming that private equity plays an important role in growing and strength-
ening United States businesses throughout all sectors of the economy 
and in every State and congressional district and that it has fostered 
significant investment in the United States economy. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2015 
Mr. CONAWAY (for himself, Mr. ALLEN, Mr. CARTER of Texas, Mr. COLLINS 
of New York, Mr. BABIN, Mrs. BLACKBURN, Mr. BOUSTANY, Mr. 
FARENTHOLD, Mr. FLORES, Mr. FRANKS of Arizona, Mr. GOHMERT, Mr. 
HUDSON, Mr. HURT of Virginia, Mr. LAMALFA, Mr. LAMBORN, Mr. 
LUCAS, Mr. LUETKEMEYER, Mr. MARCHANT, Mr. MCHENRY, Mr. MOON-
EY of West Virginia, Mr. OLSON, Mr. PEARCE, Mr. ROKITA, Mr. SALM-
ON, Mr. SESSIONS, Mr. SMITH of Texas, Mr. STIVERS, Mr. WEBER of 
Texas, and Mr. YOUNG of Indiana) submitted the following resolution; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
RESOLUTION 
Affirming that private equity plays an important role in 
growing and strengthening United States businesses 
throughout all sectors of the economy and in every State 
and congressional district and that it has fostered signifi-
cant investment in the United States economy. 
Whereas private equity and growth capital is an industry that 
partners with pensions, foundations, and endowments to 
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•HRES 464 IH 
invest over the long term in promising companies in need 
of a turnaround and poised for growth; 
Whereas private equity invested more than $522,000,000,000 
in United States-based businesses last year and more 
than $4,577,000,000,000 over the past 10 years; 
Whereas the cornerstone of the private equity business model 
is growing and strengthening companies over the long 
term to create stronger businesses and return value to in-
vestors; 
Whereas private equity partnerships help bring together man-
agement expertise with investment capital; 
Whereas low taxes on long-term capital gains income is a 
fundamental part of fostering long-term investment in 
the United States, and private equity relies on long-term 
capital gains income to incentivize investment; 
Whereas private equity funds invest in a diverse set of indus-
tries and sectors of the United States economy, including 
manufacturing, health care, information technology, busi-
ness services, energy, and others; 
Whereas private equity investment drives economic growth 
throughout the Nation and helps United States busi-
nesses compete globally; 
Whereas more than 24,000 private equity-owned businesses 
are based in the United States and employ approximately 
11,300,000 people in the United States; 
Whereas most private equity investment spans between 3 and 
7 years; 
Whereas public pension funds’ median 10-year annualized re-
turns on investments in private equity outperform all 
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•HRES 464 IH 
other asset classes, including public equity, real estate, 
and fixed income; 
Whereas policymakers should treat all similarly situated part-
nerships, such as private equity, venture capital, and real 
estate, equally; 
Whereas tax policy should incentivize capital access, invest-
ment, and innovation; 
Whereas appropriately taxing capital gains income is funda-
mental to many business partnerships, including private 
equity partnerships; 
Whereas the key criterion for capital gains treatment is if the 
taxpayer has made an entrepreneurial investment of cap-
ital, expertise, or both in a capital asset; 
Whereas private equity general partners develop business 
plans, hire and manage senior corporate executives, and 
participate in the ongoing corporate governance for the 
firms their funds invest in; 
Whereas the gains of a private equity fund are a direct result 
of the significant expertise invested by the general part-
ners and these gains have always been appropriately 
taxed as capital gains income for all partners; 
Whereas mischaracterizing carried interest income as ordi-
nary income will discourage the formation of private eq-
uity partnerships and reduce the entrepreneurial risk-tak-
ing necessary to build businesses; and 
Whereas private equity firms are essential to a healthy, grow-
ing United States economy and private equity invest-
ments can unlock economic value, transform industries, 
and put the Nation back to work: Now, therefore, be it 
Resolved, That— 
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•HRES 464 IH 
(1) the House of Representatives affirms that 
private equity plays an important role in growing 
and strengthening United States businesses through-
out all sectors of the economy and in every State 
and congressional district and that it has fostered 
significant investment in the United States economy; 
and 
(2) it is the sense of the House of Representa-
tives that Congress should maintain normative tax 
policy that carried interest income resulting from the 
sale of a capital asset is capital gains income. 
Æ 
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