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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (66698)	11/6/2002 6:42:20 PM
From: Cary Salsberg	Respond to of 70976

RE: "...a zero capital gains tax rate for direct investments in new, small technology companies." I don't think 0% instead of 20% will make much difference. These are very high risk, very high reward situations and I don't think a change in the capital gains tax rate will seriously affect decision making. VC investing is more attuned to the situation in the stock market than capital gains tax rates. The rates didn't seem to hinder the flow of money up to 2000. RE: "...a one-year 20 percent tax credit for investments in information technology." This is the kind of tax reduction that is needed. It is temporary, it targets an area that is lagging severely, and it is a "pump priming" type measure for the whole economy.