One of the major obstacles facing all entrepreneurs in the United States when starting a new business or expanding an existing one is raising capital. What is Capital? Capital is the engine of a growing economy. Here capital refers to money that people invest in a business, yet capital can be money invested in the stock market or capital can simply be a physical investment in a plant, factory, and the forklifts. Investment and entrepreneurship are the heart and soul of a lively economy. There is no other economic task more important than investing one’s capital into new ideas and new enterprises. In the type of economic world in which is present today, the opportunity for good returns on a person’s money must be in abundance to allure investments in such ventures. Capital gains taxes significantly diminish these returns, therefore reducing the incentives to invest.

A capital gain is simply an income derived from the sales of an investment. Investors are rewarded with this gain for taking the risk of investing their money. These capital gains on your assets are then taxed a

Over the past few years perhaps no economic issue has been more controversial than the capital gains tax. The potential for the American economy is locked in accumulated assets that are stalled due to the severe tax penalty when sold. Abolishing the capital gains tax would provide a boost in the growth of the economy. All classes of Americans would stand to benefit from this tax cut. The investors that gain access to their accumulated assets that are now locked would encourage entrepreneurship. New businesses would provide new jobs and industry will open new positions due to the growing economy. The majority of middle class taxpayers that claim capital assets will save their hard earned money with the cutting of the capital gains tax. This will provide more money to be invested in the economy. Dismissing the capital gains tax will also make the United States an inviting country for international investors, this will increase the amount of available capital in the economy.

ccording to your income tax level and the amount of time you hold the asset before you sell it. Eliminating this capital gains tax would unlock billions of dollars of unrealize

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