As Congress fights over extending the tax cuts imposed during the Bush Administration, Senator Ben Nelson says lawmakers should be taking the lead on making tax incentives that spurn business investments. He says trillions of dollars are sitting idle because businesses see no advantage in expanding.
“We want that to be invested and that is why we have to have a very favorable capital gain rate.”
Senator Nelson says he is in favor of providing long term tax incentives for economic development projects and businesses would be more inclined to invest in their companies’ growth.
“There is nothing wrong about talking about one year when we want businesses to invest three, four, five years.”
Senator Nelson says part of the reason for the country’s economic stagnation is the lack of incentives for businesses to spend their money on capital improvements.
“To get economic growth, we’ll get job growth. Only when we move forward will we see expansion and new jobs.”
With discussions on tax incentives on Capitol Hill once again sparks the idea of a flat tax for business and personal income. Senator Nelson isn’t fond of that idea as there are too many ands, ifs and buts.
“Well, you will have to think about charitable contributions. Are they included? Mortgage deductions. Will they be included? Will you have exemptions for spouses and dependent children? Once you start dealing with those issues the flat tax is not flat anymore or if it is flat it is going to be at a higher rate.”