By Erin Corcoran

As the saying goes, “the challenge in any business to make ordinary people do extraordinary things.” This certainly rings true when looking at House Republican Chief Deputy Whip Eric Cantor (R-VA). The Congressman started his career working in his father’s real estate firm, where he learned that individuals can succeed with innovative ideas and hard work, but they also must team up with an investor to create a successful business.

“Because of this experience, I’m a passionate advocate for partnerships,” Cantor says. For instance, in order to combat the proposed tax hikes on mom-and-pop partnerships, he formed the Congressional coalition for the Freedom of American Investors and Retirees. The coalition opposes legislation that would hike tax rates on private equity firms that go public and income collected by business partnerships.

In addition to the coalition, Cantor also serves on the Ways and Means Committee and also as chairman of the Congressional Task Force on Terrorism and Unconventional Warfare.

Recently, Cantor sat down with Portfolio to give his thoughts and opinions on several issues affecting real estate investing and retirement savings.

On Investing in REITs

Cantor is no stranger to REITs. In fact, he is the lead House Republican co-sponsor of the REIT Investment Diversification and Empowerment Act of 2007 (RIDEA), legislation that would provide REITs with more flexibility to manage their U.S. portfolios and to invest in global markets.

“This legislation would modify existing rules to better enable REITs to manage and diversify their real estate investments,” Cantor says. He adds that this legislation is particularly helpful for REITs because the tax code they follow must be simplified and modernized. “We live in a rapidly changing global economy, and there is a need to change outdated and cumbersome aspects of the Federal tax code,” he says.

Additionally, Cantor is an advocate for small business owners and small- to medium-sized investors in today’s economy. “Over the last several years, REITs have become extremely popular places for all types of investors to invest their capital,” he says. “It is in the best interests of American prosperity and economic growth to ensure the continued vibrancy of REITs.”

On Retirement Savings

Due to many factors, such as the retiring baby boom generation, Congress has increasingly focused on ways to preserve and protect the retirement savings of American workers. In fact, nearly two-thirds of current retirees rely on Social Security as their primary source of income. “Too many Americans are not encouraged to save enough for their post-retirement years,” Cantor says. “Congress has a vital role to help—not hinder—families who are trying to save for retirement.”

In recent years, Congress has put some measures in place to help Americans save for retirement. One example is the Pension Protection Act of 2006 that permits employers to provide professional advice about investing for retirement. Despite these measures, however, Cantor says that there is still a long way to go.

“Congress needs to maintain a low-tax environment for retirees,” he says. “We need to encourage personal savings. Tools such as individual annuities, IRAs and 401(k) plans must be strengthened and promoted as ways to encourage private retirement savings.”

Bill Tracker
Here is a look at current REIT and real estate-related bills in Congress.
Name	What the bill would do	Status and Next Steps
H.R. 1147, S.2002 - REIT Investment Diversification and Empowerment Act (RIDEA), sponsored in the House of Representatives by Representatives Joseph Crowley (D-NY) and Eric Cantor (R-VA) and in the Senate by Senators Orrin Hatch (R-UT) and Ken Salaz	• Updates the safe harbor test for dealer sales so that 1) the holding period requirement would be reduced from four years to two years; and 2) the 10% sales limit would be measured by either value or tax basis. • The limit on TRS securities would be increased from 20% to 25%. • Health care facilities could be leased by a REIT to its TRS under the same rules applying to lodging facilities.• Foreign currency gains generated by REITs operating outside the United States would qualify under REIT gross income tests. • U.S. REITs could own foreign REIT stock under the same rules applying to the ownership of U.S. REITs.	• Secure additional cosponsors in the House Ways and Means Committee and the Senate Finance Committee • New revenue estimate on the impact of RIDEA from the Joint Committee on Taxation has been secured. • Pursue inclusion of RIDEA, or portions of it, in appropriate legislation being considered by the House and the Senate.
H.R. 2761—Terrorism Risk Insurance Revisions and Extension Act of 2007 (TRIREA), sponsored by Representative Michael Capuano (D-MA) and later modified by S. 2285, Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), sponsored by Se	• Extends federal terrorism insurance program for 7 years. • Provides for a GAO study on the availability and affordability of insurance coverage for nuclear, biological, chemical and radiological risk. • Provides program coverage for both foreign and domestic terrorism events. • Maintains the current program trigger lever of $100 million.	• TRIPRA signed into law by President Bush on December 26, 2007 as Public Law 110-160.
H.R. 2834—Carried Interest Legislation, sponsored by Representative Sander Levin (D-MI) and others	• To abolish the capital gains treatment on carried interest and treat it as ordinary income. • The bill will change the taxing of profits from the capital gains rate (15%) to ordinary income (35%).	• May be considered in a larger tax bill, but likely will not be adopted in 2008
S. 1624—Legislation on Tax Treatment of Publicly Traded Partnerships, sponsored by Senator Max Baucus (D-MT) and Senator Chuck Grassley (R-IA)	• To impose a corporate level tax on certain publicly traded partnerships that provide investment advice.	• May be considered in a larger tax bill, but likely will not be adopted in 2008
H.R. 3396, S. 34 - Sales Tax Fairness and Simplification Act, sponsored in the House of Representatives by Representatives William Delahunt (D-MA), Ray LaHood (R-IL) and Spencer Bachus (R-AL) and in the Senate by Senator Michael Enzi (R-WY)	• To grant federal authorization to states that are party to the Streamlined Sales and Use Tax Agreement to require remote sellers (like catalog and Internet retailers) to collect or remit sales and use taxes.	• Work with the e-Fairness Coalition to pass this legislation in 2008.