The Washington Times - January 22, 2008, 12:21PM
UPDATE Republican Study Committee SEE RELATED:

House Republican Rep. Jeb Hensarling
1) Full, Immediate Expensing. The bill would allow all businesses to immediately expense\0x2014or deduct on their tax returns\0x2014the costs of assets (including buildings) they purchase for their business in the year that they buy such assets (\0x201CSection 179\0x201D expensing). Under current law, businesses can only take such deductions in pieces, over several years. This provision, by accelerating the expensing, would encourage the purchase of assets with which to grow a business.\ \ \ 2) Significant Reduction in the Top Corporate Tax Rate. The bill would immediately cut the top corporate income tax rate from 35% to 25%, aligning it with the average rate in the European Union. This provision, by allowing businesses to keep more of the money they earn, would encourage the expansion of businesses, the hiring of more workers, and an acceleration of investment, while making American companies more competitive internationally.\ \ \ 3) End the Capital Gains Tax on Inflation. The bill would index for inflation the cost basis used when calculating the capital gains tax on assets acquired before the end of 2008. Under current law, the capital gains tax is based on the difference in the original purchase price of the asset and the sale price of the asset. However, some of this difference, or \0x201Cgain,\0x201D can be attributed to inflation. This provision, by effectively reducing the amount of a gain that is taxable, would encourage the movement of capital in 2008 and spur voluminous economic investment.\ \ \ 4) Sharp Reduction in the Capital Gains Rate for Corporations. The bill would allow corporations to benefit from the 15% capital gains rate. Under current law, individuals pay a top capital gains rate of 15%, but corporations are subject to a 35% top rate. This provision, by encouraging corporations to sell unwanted assets, would unleash funds and materials with which to create jobs and grow the economy.
— Jon Ward, White House correspondent, The Washington Times