Elimination of the Capital Gains TaxOne of the biggest obstacles that all entrepreneurs in the United States face when starting a new business or expanding an existing one is raising capital. In this case, capital refers to the money that people invest in a business. Investment and entrepreneurship are the heart and soul of a vibrant economy. There is no other economic task more important than investing your capital in new ideas and new businesses. Therefore, capital raised by a person or a group of professional investors remains a crucial source of financing for this type of business. In the kind of economic world present today, the opportunity for good returns on a person's money must be abundant to attract investment into such ventures. Capital gains taxes significantly reduce these returns, thus reducing incentives to invest. Eliminating the capital gains tax will stimulate entrepreneurship and new investment in the economy, which will in turn increase economic growth and increase the number of jobs. To stimulate economic growth in the United States, capital gains taxes should be eliminated. Members of Congress once considered a reduction in the capital gains tax rate from 28% to 19.8%. Combined with indexation, or reducing capital gains tax by any amount, it would be a critical pro-growth step taken by Congress. However, given the fickle and high-risk nature of investments and business activities, and the importance of maintaining a competitive economy in a global environment, capital gains should be entirely exempt from taxation. A zero% tax on capital gains would attract entrepreneurial risk-taking, which is very important for economic growth. It would entice wealthy investors to invest in a particular business, which in small amounts would greatly increase economic growth in the United States. In the Wall Street Journal the U.S. Commission on Civil Rights said, “The capital gains tax cut actually increases the flow of financial 'seed corn' to budding entrepreneurs.” Additionally, from a global perspective, the United States has one of the highest capital gains tax rates. Depending on inflation, the United States sometimes has the highest capital gains tax rate in the world. In a competitive global economy, a zero percent capital gains tax rate would make the United States a haven for capital, which, in the long term, would stimulate economic growth in the United States. Eliminating the capital gains tax altogether would not only promote an economic “boom” in the United States, but give the United States the edge it needs to compete in the global world, not to mention create new jobs. taxes on profits are clear.