New England Council Urges Congress To Extend Dividends, Capital Gains Tax Cuts
Business group urges tax cuts that will spur investment and grow businesses, jobs
Boston, MA (November 16, 2010)—The New England Council, an alliance of businesses throughout New England dedicated to improving the region’s economy and quality of life, is urging Congress to extend the current tax rate on capital gains and dividends, rather than allowing them to spike at year’s end. As Congress returns to Washington this week for the lame-duck session, the Council sent a letter to each member of the New England delegation urging extension of the existing tax rates, arguing that such an extension would encourage investment in companies that in turn grow, create jobs, and drive the economy.
“Allowing the tax rates on capital gains and dividends to increase dramatically at the beginning of next year would interrupt economic gains we’ve worked so hard to make in the past 18 months,” said James T. Brett, President and CEO of the New England Council. “Continuity and predictability in taxes helps facilitate economic growth, and it simply does not make sense to increase these taxes just as we are beginning to see signs of recovery.”
The Council’s letter notes that as American companies compete in an increasingly global market, and increased capital gains and dividends tax rates would undermine our nation’s ability to maintain our position as a worldwide economic leader. The letter also notes that higher tax rates on dividends will have a significant impact on seniors, as seniors are far more likely than any other investor group to own stocks which pay dividends. In the New England states, over 50% of seniors own stocks that pay dividends.