IV 
113TH CONGRESS 
2D SESSION 
H. RES. 702 
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 
JULY 31, 2014 
Mr. CONAWAY
(for himself, Mr. PEARCE, Mr. LUETKEMEYER, Mr. 
SOUTHERLAND, Mr. COLLINS of New York, Mr. HUDSON, Mr. BARTON, 
Mr. HALL, Mr. THORNBERRY, Mr. SESSIONS, Mr. STOCKMAN, Mr. 
MARCHANT, Mr. MCHENRY, Mr. NEUGEBAUER, Mr. HURT, Mr. CARTER, 
Mr. FARENTHOLD, Mr. AUSTIN SCOTT of Georgia, Mr. GARRETT, Mr. 
FINCHER, Mr. WESTMORELAND, Mr. SMITH of Texas, Mr. MCCAUL, Mr. 
CRAWFORD, Mr. ROONEY, Mr. OLSON, Mr. SCALISE, Mr. GOHMERT, Mr. 
STIVERS, Mr. FLORES, Mr. BOUSTANY, Mr. BARROW of Georgia, Mr. 
ROKITA, and Mr. STUTZMAN) submitted the following resolution; which 
was referred to the Committee on Financial Services 
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 
invest over the long term in promising companies in need 
of a turnaround and poised for growth; 
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•HRES 702 IH 
Whereas private equity invested more than $433,000,000,000 
in United States-based businesses last year and more 
than $4,100,000,000,000 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 the private equity partnerships help bring together 
management expertise with investment capital; 
Whereas low taxes on long-term capital gains is a funda-
mental part of fostering long-term investment in the 
United States, and private equity relies on long-term cap-
ital gains 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 17,700 private equity-owned businesses are based in 
the United States and employ more than 7,500,000 peo-
ple worldwide; 
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 
other asset classes, including public equity, real estate, 
and fixed income; 
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•HRES 702 IH 
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 is fundamental 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 for all partners; 
Whereas characterizing a carried interest as ordinary income 
will discourage the formation of private equity partner-
ships and reduce the entrepreneurial risk-taking nec-
essary 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 the House of Representatives affirms 
that private equity plays an important role in growing and 
strengthening United States businesses throughout all sec-
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•HRES 702 IH 
tors of the economy and in every State and congressional 
district and that it has fostered significant investment in 
the United States economy. 
Æ 
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