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A Proposal to Increase Capital-Gains Taxes May Hurt Minority-Owned Businesses
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(OPEN):
FOR MINORITY-OWNED BUSINESSES TO SUCCEED, THEY NEED ACCESS TO CAPITAL.
BUT, ONE BUSINESS LEADER SAYS THAT SOME IN CONGRESS WANT TO SHUT THE
DOOR ON NEW VENTURES THAT CREATE JOBS AND OPPORTUNITY. HARRY
ALFORD--PRESIDENT OF THE NATIONAL BLACK CHAMBER OF
COMMERCE--EXPLAINS WHY THE PROPOSAL BEFORE BOTH THE SENATE
FINANCE COMMITTEE, AND THE HOUSE WAYS AND MEANS COMMITTEE,
TO INCREASE CAPITAL-GAINS TAXES PAID BY INVESTMENT PARTNERSHIPS, WOULD
BE DETRIMENTAL TO AMERICAN MINORITY-OWNED BUSINESSES...
(ALFORD):
"IF CONGRESS RAISES CAPITAL-GAINS TAXES ON PARTNERSHIPS LIKE
PRIVATE-EQUITY GROUPS, BILLIONS IN POTENTIAL INVESTMENT MONEY
WILL BE LOST. THAT WILL PREVENT COMPANIES FROM INVESTING IN NEW
VENTURES, AND HIRING NEW PEOPLE. ACCESS TO CAPITAL HAS ALWAYS BEEN
A CHALLENGE FOR MINORITY-OWNED BUSINESS--AND HINDERING THE VERY INDUSTRY
THAT PROVIDES SUCH AN AVENUE FOR ACCESS IS DETRIMENTAL TO THE SUCCESS OF
THESE BUSINESSES. THE BILLS BEFORE CONGRESS TARGET INVESTMENT
PARTNERSHIPS, WHICH TAKE RISKS RESCUING TROUBLED COMPANIES AND LAUNCHING
NEW ONES. WITHOUT THEIR CAPITAL, MINORITY BUSINESS WILL HAVE EVEN
MORE TROUBLE RAISING THE CAPITAL THAT THEY NEED TO BE SUCCESSFUL.
AND, LET'S NOT FORGET WHO MAKES UP INVESTORS IN THESE PARTNERSHIPS:
PENSION FUNDS, ENDOWMENTS, AND FOUNDATIONS. THESE PEOPLE AND
ORGANIZATIONS ARE COUNTING ON THE SUCCESSFUL RETURNS [THAT] INVESTMENT
PARTNERSHIPS CAN PROVIDE--AND HIGHER CAPITAL-GAINS TAX-RATES WILL PUT
THAT AT RISK."
(CLOSE):
ALFORD URGES CONCERNED CITIZENS TO CONTACT THEIR ELECTED OFFICIALS, AND
ASK THEM TO VOTE "NO" ON ANY LEGISLATION THAT INCREASES CAPITAL-GAINS
TAXES. HE BELIEVES THAT RAISING CAPITAL-GAINS RATES WILL HAVE THE
UNINTENDED CONSEQUENCE OF MAKING IT HARDER FOR MINORITY BUSINESS OWNERS
TO ACCESS THE CAPITAL THAT THEY NEED TO CREATE QUALITY JOBS, SO THAT
THEY AND THEIR EMPLOYEES CAN ENJOY THE AMERICAN DREAM.
