Affirming that private equity plays an important role in growing and strengthening United States businesses throughout all sectors of the economy and in every State and congressional district and that it has fostered significant investment in the United States economy.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 702 Introduced in House (IH)]

113th CONGRESS
  2d Session
H. RES. 702

 Affirming that private equity plays an important role in growing and 
 strengthening United States businesses throughout all sectors of the 
 economy and in every State and congressional district and that it has 
     fostered significant investment in the United States economy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2014

Mr. Conaway (for himself, Mr. Pearce, Mr. Luetkemeyer, Mr. Southerland, 
    Mr. Collins of New York, Mr. Hudson, Mr. Barton, Mr. Hall, Mr. 
Thornberry, Mr. Sessions, Mr. Stockman, Mr. Marchant, Mr. McHenry, Mr. 
 Neugebauer, Mr. Hurt, Mr. Carter, Mr. Farenthold, Mr. Austin Scott of 
   Georgia, Mr. Garrett, Mr. Fincher, Mr. Westmoreland, Mr. Smith of 
 Texas, Mr. McCaul, Mr. Crawford, Mr. Rooney, Mr. Olson, Mr. Scalise, 
   Mr. Gohmert, Mr. Stivers, Mr. Flores, Mr. Boustany, Mr. Barrow of 
    Georgia, Mr. Rokita, and Mr. Stutzman) submitted the following 
 resolution; which was referred to the Committee on Financial Services

_______________________________________________________________________

                               RESOLUTION


 
 Affirming that private equity plays an important role in growing and 
 strengthening United States businesses throughout all sectors of the 
 economy and in every State and congressional district and that it has 
     fostered significant investment in the United States economy.

Whereas private equity and growth capital is an industry that partners with 
        pensions, foundations, and endowments to invest over the long term in 
        promising companies in need of a turnaround and poised for growth;
Whereas private equity invested more than $433,000,000,000 in United States-
        based businesses last year and more than $4,100,000,000,000 over the 
        past 10 years;
Whereas the cornerstone of the private equity business model is growing and 
        strengthening companies over the long term to create stronger businesses 
        and return value to investors;
Whereas the private equity partnerships help bring together management expertise 
        with investment capital;
Whereas low taxes on long-term capital gains is a fundamental part of fostering 
        long-term investment in the United States, and private equity relies on 
        long-term capital gains to incentivize investment;
Whereas private equity funds invest in a diverse set of industries and sectors 
        of the United States economy, including manufacturing, health care, 
        information technology, business services, energy, and others;
Whereas private equity investment drives economic growth throughout the Nation 
        and helps United States businesses compete globally;
Whereas 17,700 private equity-owned businesses are based in the United States 
        and employ more than 7,500,000 people worldwide;
Whereas most private equity investment spans between 3 and 7 years;
Whereas public pension funds' median 10-year annualized returns on investments 
        in private equity outperform all other asset classes, including public 
        equity, real estate, and fixed income;
Whereas policymakers should treat all similarly situated partnerships, such as 
        private equity, venture capital, and real estate, equally;
Whereas tax policy should incentivize capital access, investment, and 
        innovation;
Whereas appropriately taxing capital gains is fundamental to many business 
        partnerships, including private equity partnerships;
Whereas the key criterion for capital gains treatment is if the taxpayer has 
        made an entrepreneurial investment of capital, expertise, or both in a 
        capital asset;
Whereas private equity general partners develop business plans, hire and manage 
        senior corporate executives, and participate in the ongoing corporate 
        governance for the firms their funds invest in;
Whereas the gains of a private equity fund are a direct result of the 
        significant expertise invested by the general partners and these gains 
        have always been appropriately taxed as capital gains for all partners;
Whereas characterizing a carried interest as ordinary income will discourage the 
        formation of private equity partnerships and reduce the entrepreneurial 
        risk-taking necessary to build businesses; and
Whereas private equity firms are essential to a healthy, growing United States 
        economy and private equity investments can unlock economic value, 
        transform industries, and put the Nation back to work: Now, therefore, 
        be it
    Resolved, That the House of Representatives affirms that private 
equity plays an important role in growing and strengthening United 
States businesses throughout all sectors of the economy and in every 
State and congressional district and that it has fostered significant 
investment in the United States economy.
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