SALEM (AP) - Seeking to keep Oregon's economic recovery from stalling, House Republicans announced a 10-point economic package that includes a proposed cut in the capital gains tax rate.

"Our economy is improving, but we have a long way to go," House Speaker Karen Minnis, R-Wood Village, said at a news conference Wednesday.

House Revenue Chairman Tom Butler, R-Ontario, said Republicans want to halve the income-tax rate for capital gains from 9 percent over five years to 4.5 percent. He said the current rate discourages business investment and drives high-wealth individuals from the state.

The Republicans said they also would try to increase the exemption from estate taxes from $1 million to $2 million by 2010, adopt several federal tax provisions to make filing easier, and expand the research-and-development tax credit.

Democratic leaders knocked the package because it excludes issues they consider important to economic development, such as reducing the cost of health insurance.

"In general, this is a collection of old and expensive ideas that, if fully implemented, would increase the burden on middle-class Oregonians," said House Democratic Leader Jeff Merkley, D-Portland.

The Legislative Revenue Office estimated that cutting the capital gains tax would have a minimal effect on the upcoming 2005-07 budget but could cost the state $250 million annually by 2010.

Butler, however, said a capital gains cut would pay for itself by creating jobs and promoting economic activity.

Senate Revenue Chairman Ryan Deckert, D-Beaverton, disputed that, saying economic modeling did not show that the capital gains would create much economic growth. He said a better approach would be to give breaks to those who invest in Oregon businesses.