New England Council Commends Passage Of Tax Cut Extensions That Will Bolster Economy
Tax Cut Package Includes Several Provisions Supported By Business Group
Boston, MA (December 17, 2010) – The New England Council, the nation’s oldest regional business organization, today praised Congress for including in the recently-passed tax cut extension package several provisions that will bolster the economy. In recent weeks, the Council has advocated for extending the current capital gains and dividends tax rates, extending the research & development (R&D) tax credit, and reinstating the active financing exception, all of which were included in the package that President Obama will sign today.
“This was a tremendous example of bi-partisanship and compromise to reach what we believe is the right result: creating a tax environment that enables businesses to thrive,” said James T. Brett, President and CEO of the New England Council. “Several key provisions in this package—including extending capital gains and dividends tax rates, extending the R&D tax credit, and reinstating the active financing exception—will enable businesses to grow and create the jobs that are so desperately needed in today’s economy.”
In recent weeks, the New England Council, on behalf of it’s over 400 members throughout the region, has urged Congress to include these provisions in any tax cut extension legislation:
Extending Capital Gains & Dividends Tax Rates – The package includes the extension of the current tax rates on dividends and capital gains. In a letter to the New England delegation, the Council had urged Congress to extend these provisions in order to promote investment in businesses that would in turn grow and create jobs.
Extending the R&D Tax Credit – Congress also voted to extend the research & development tax credit, a tax policy long supported by the New England Council. In a second letter the New England delegation, the Council noted that the R&D credit has provided businesses of various sizes and fields the capacity to recoup a portion of the financial investments they have made to create new or better products.
Reinstatement of the Active Financing Exception – Also in the second letter, the Council urged the delegation to support the reinstatement of the active financing exception to help equalize tax treatment cross-nationally for companies that are headquartered in the U.S., but earning certain types of banking or finance income in other countries. This provision was also included in the package that Congress has approved.