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September 13, 2006
Dear Member of Congress:
On behalf of the more than 800,000 members of FreedomWorks I ask for your support of H.R. 6057; legislation recently introduced by Rep. Mike Pence (R-IN) and Rep. Eric Cantor (R-VA) that would index for inflation the cost basis used in calculating the capital gains tax.
The tax on capital gains is a fundamentally unfair, double tax on income. It is also economically destructive, punishing the risk-taking and entrepreneurial investment that is essential to economic growth and job creation. Ultimately, we believe that such corruptions of the tax code should be scrapped altogether and replaced with a simple, low, flat income tax. And although we would like to eliminate the pernicious effects that come with taxing capital by not taxing it at all, indexing at least limits the adverse impacts of capital gains taxes.
For a Congress criticized for its inaction, H.R. 6057 provides an excellent opportunity to deliver an important win on pro-growth fiscal policy and I again urge your active support.