Roskam Introduces Legislation to Permanently Cap Capital Gains and Dividend Tax Rates at 15%
Broad coalition of American job creators send letter in support; impending tax-hike would hit seniors, businesses, investors of all sizes
WASHINGTON, DC – Congressman Peter Roskam (R-IL), Chief Deputy Whip and member of the Ways & Means Committee, introduced legislation today to permanently cap the Capital Gains and Dividend Tax Rates at 15% to avoid an impending tax hike that would particularly affect American businesses, seniors, and investors of all sizes. Sen. Mike Crapo (R-ID), member of the Senate Finance Committee, is introducing companion Senate legislation.
The sunsetting of the current tax rates of the last decade, set to expire at the end of 2012, coupled with a guaranteed new 3.8% tax from the Healthcare law, starting in 2013, would mean effectively a 58% higher tax rate on capital gains and as much as a 189% higher tax rate on dividend income.
The Tax Hike Prevention & Business Certainty Act – and its companion Senate legislation, has support from a broad coalition of 27 American businesses and organizations. Click here to read Roskam's op-ed in today's Investor's Business Daily about the economic benefit of permanently capping these rates.
"With near double-digit unemployment, fostering a competitive and stable environment for job creation is critical for turning the American economy around," said Chief Deputy Whip Roskam. "A critical first step is removing uncertainty and making these tax rates permanent. If we don't act, Americans who rely heavily on these current rates – from seniors to businesses to investors of all kinds – will be severely negatively impacted. Instead of adding more barriers to private-sector job creation, let's choose to foster a culture that encourages investment, capital formation, and economic growth."
"Pro-growth tax policy that will generate investment, capital formation and job creation is critical to reversing the uncertainty and sluggishness in our economy," said Senator Mike Crapo (R-Idaho). "Providing certainty for farmers and ranchers, along with other business owners and investors, starts with the guarantee of fair and competitive tax reform, and that reform starts by stopping increases in capital gains and related investment taxes."
The Alliance for Savings and Investments (ASI) – a diverse group of 27 dividend-paying companies, investor organizations, and trade associations – sent a letter today in support of this legislation. They write, "Lower investment tax rates don't just benefit direct shareholders; they benefit the tens of millions of Americans who own stock indirectly through mutual funds as well as stock held through life insurance policies, pension funds or 401(k) plans," the coalition members explained. To read the full letter, click here.