In the News

Press Releases


  • New ACCF study: State-by-state impact of higher dividend tax rates
    December 2012 —
  • Financial, business communities fear tax hike on investment income
    November 28, 2012 — The Hill
    The business and financial communities are on high alert that preferential tax rates on investment income could be on the chopping block during end-of-year talks on taxes and spending
  • Southern's Beattie on Fiscal Cliff Concerns
    November 28, 2012 — Bloomberg
    Arthur Beattie, chief financial officer of Southern Co., talks about the importance to the company of averting the so-called fiscal cliff.
  • To Avoid A Fiscal Cliff Dive, Extend Today's Dividend Tax Rates
    November 14, 2012 — Forbes
    With the 2012 election behind us, now is the time for our nation’s leaders to work together to restore America’s financial integrity.
  • Here We Go Again: Stock Slide Gains Steam
    November 8, 2012 — Wall Street Journal
    After yesterday’s carnage in the stock market, strategists warned bouncing back wouldn’t be easy. Sure enough, today’s slide is starting to pick up some steam in early afternoon trading.
  • Retirees And The Dividend Cliff
    October 25, 2012
  • Lewis Hay: The Tax Cliff Endangers Seniors; Now is not the time to raise tax rates on investment income.
    July 24, 2012 — Wall Street Journal — By Lewis Hay III
    Most people know that the U.S. government is rapidly approaching the edge of a fiscal cliff that will raise taxes for millions of Americans—at every income level and age
  • Fate of Dividend Tax Rate
    July 17, 2012 — Bloomberg Rewind
    Nextera Energy's Lew Hay discusses the effects of the fiscal cliff, specifically on the dividend tax rates. He speaks with Matt Miller on Bloomberg Television's "Bloomberg Rewind." (Source: Bloomberg)
  • Southern Company CEO on Impact of Higher Taxes on Dividends
    July 17, 2012 — Nightly Business Report
    CEOs of several big utility companies spoke on Capitol Hill with lawmakers about the impact of higher taxes on dividends. We spoke with one, Thomas Fanning of Southern Company, about what his message was to Congress.
  • Southern Company CEO on Drought & Dividends
    July 17, 2012 — CNBC's Closing Bell
    Southern Company CEO Tom Fanning provides perspective on the terrible Midwest drought and national heat wave putting pressure on crops and utilities, and the possible rise in dividend rates.
  • Capital Gains Fault Line As Obama-Romney Tax Plans Differ
    May 30, 2012 — Bloomberg News
    President Barack Obama and Republican opponent Mitt Romney want to move the top capital gains tax rate in opposite directions, with a single number emphasizing their divisions on economic and fiscal policy.
  • Southern Co. CEO on CNBC’s Squawk Box
    May 29, 2012 — MediaCenter
  • GOP: House vote on cuts to forestall 'taxmageddon'
    May 20, 2012 — InvestmentNews
    But effort could hit the skids in the Senate
  • Commentary: A capital gains hike would hit Detroit hard
    May 15, 2012 — The Detroit News
    Warren Buffett may lament paying less taxes than his secretary, but the Buffett Rule would cost Detroit, Pinar Cebi Wilber writes.
  • John Snow: 'Taxmaggedon' Is a Real Threat
    May 13, 2012 — Wall Street Journal
    Next year's scheduled increases on dividends and capital gains will retard investment and derail the recovery.
  • Taxmageddon: Dividend Taxes
    May 9, 2012 — CNBC
    Jeff Gardner, Windstream president and CEO appeared on CNBC’s “Closing Bell” to discuss the importance of preventing a dividend tax increase in 2013.
  • The Tax War Continues
    May 9, 2012 — CNBC
    Jared Bernstein, Center on Budget and Policy Priorities and Rep. Jeb Hensarling, (R-TX) appeared on CNBC’s “The Kudlow Report” to discuss the importance of preventing a dividend tax increase in 2013.
  • CEOs Writing Treasury Secretary Geithner
    May 8, 2012 — CNBC
    Jeff Sterba, American Water CEO appeared on CNBC’s “Power Lunch” to discuss the importance of preventing a dividend tax increase in 2013.
  • The 2013 Fiscal Cliff Could Crush Stocks
    May 4, 2012 — The Wall Street Journal
    Why doesn't the stock market, that most sensitive of economic barometers, seem to care that the U.S. economy faces a "fiscal cliff" at year-end?
  • President Obama's Tax Hikes on Capital Gains Stifle Growth
    March 29, 2012 — PolicyMic
    A critical component to any economic recovery is incentivizing capital investments and entrepreneurial activity in the private sector.
  • Apple to Pay Dividend, Plans $10 Billion Buyback
    March 19, 2012 — The Wall Street Journal
    The News Hub provides full coverage of Apple's decision to pay a $2.65 per share dividend and institute a stock buyback over the next three years.
  • The Dangers of Raising Taxes on Investment Income
    March 2012 — The Manhattan Institute
    In its fiscal year 2013 budget proposal, the Obama administration has proposed a series of tax law changes designed to raise more revenue from higher-income earners.
  • High dividend taxes hurt the nation
    March 3, 2012 — The Wall Street Journal
    "Obama's Dividend Assault" (Review & Outlook, Feb. 22) succinctly outlines the harmful impact a top dividend tax rate of 44.8% would have on taxpayers at every income level.
  • 3 reasons to fear a dividend tax hike
    February 28, 2012 — MSN Money
    President Barack Obama's proposal to raise the tax on dividends should leave investors trembling.
  • High dividend taxes hurt the nation
    February 26, 2012 — InvestmentNews
    President Barack Obama's proposed 2013 budget should be worrisome to all investors, especially those who rely on dividend-paying stocks for a substantial portion of their income, such as retirees.
  • Obama’s Dividend Assault: A plan to triple the tax rate would hurt all shareholders
    February 22, 2012 — The Wall Street Journal
    President Obama's 2013 budget is the gift that keeps on giving—to government.
  • Obama's Tax Plan: More of the Same
    February 15, 2012 — Free Enterprise
    Obama’s budget has fallen flat in more ways than one
  • Obama Aims $1.4 Trillion Tax Increase at Highest U.S. Earners
    February 14, 2012 — Bloomberg
    President Barack Obama called for $1.4 trillion in fresh revenue from Americans at the top of the income scale, proposing higher taxes on wages and investments and limiting breaks for retirement savings and health insurance.
  • America: Land of Taxes
    February 10, 2012 — Exchanges
    A new report out today by Ernst & Young for the Alliance for Savings and Investment suggests that allowing the current tax policy on capital gains and dividends to expire will give the United States “the highest integrated dividends tax rate and the second highest integrated long-term capital gains tax rate among developed nations.”
  • Tax code must encourage investment to spur growth and create jobs
    February 9, 2012 — The Hill
    There has been a vigorous political discussion on tax rates for capital gains and dividends in recent weeks.
  • Corporate Coalition Says Obama Investment Taxes Near World High
    February 9, 2012 — Bloomberg
    A coalition of business groups and companies including Altria Group Inc. and Xcel Energy Inc. is warning Congress that failing to extend tax breaks on investment income would make U.S. tax rates on capital gains and dividends among the highest in the industrialized world.
  • Phil Gaeta: Capital gains tax is double taxation
    January 28, 2012 — Conway Daily Sun
    To say someone, whether it is Warren Buffet or Mitt Romney is only paying 15 percent income tax is misleading.
  • Obama's plan to raise capital gains taxes will drive investment offshore
    January 28, 2012 — Baltimore Sun
    In his State of the Union Address, President Obama barely touched on the country's soon-to-be $16 trillion national debt, massive joblessness, entitlement insolvency, economy-crippling government regulations and the other compelling issues ("Obama targets economy, taxes in address," Jan. 25).
  • What's Wrong With the Buffett Rule
    January 27, 2012 — Forbes
    It appears that Senator Sheldon Whitehouse (D-R.I.) intends to introduce a “Buffett Rule” bill in the Senate, in line with President Obama’s State of the Union call that anybody making over $1 million should be paying at least a 30 percent tax rate.
  • Why is investment income taxed less than wages?
    January 26, 2012 — Associated Press
    Why do Mitt Romney and other wealthy investors pay lower taxes on the income they make from investments than they would if they earned their millions from wages?
  • Eliminating state capital gains tax could spark an entrepreneurial surge
    January 19, 2012 — USA Today
    An important driver of job growth is investment.
  • For investors, it's all about the dividends
    January 13, 2012 — USA Today
    Dividends have gone from being an afterthought to one of the top things on many investors' minds.
  • Dividends Rise in Sign of Recovery
    January 10, 2012 — The New York Times
    Every year since 1976, McDonald’s has increased its annual payout to shareholders.
  • Record Dividends in 2012 Should Help Consumers
    January 5, 2012 — The Wall Street Journal
    The dividend checks are in the mail.
  • Taxes and 'fairness'
    January 2, 2012 — Times Free Press
    Many Americans are puzzled by President Barack Obama's desire to increase taxes during a time of intense economic weakness.
  • How Dividends Could Save the Day
    December 31, 2011 — The New York Times
    WHEN the global economy slowed last year, investors looking for reasons to be bullish could at least point to one positive sign: the continued strength of corporate profits.
  • Dividends shone brightly in a disappointing 2011
    December 31, 2011 — Associated Press
    Stock investors ran in place in 2011. The Standard & Poor’s 500 index is ending the year about where it started.
  • Why Some Business Owners Think Now Is the Time to Sell
    December 21, 2011 — The New York Times
    Looking back, Cyndi Finkle wishes she had sold her craft services company, Sunday Night Dinner, early in 2008 when the economy was booming. With a track record of 30 to 50 percent annual growth for each of the previous five years, it could have been a compelling transaction.
  • Dividend Stocks Become the Heroes
    December 19, 2011 — The Wall Street Journal
    A digital billboard greets commuters backed up in morning traffic along a bend in the Schuylkill Expressway snaking toward Philadelphia: "Earned Any Dividends Lately?"
  • Dividends’ Predictability is Their Big Advantage
    December 16, 2011 — The Financial Times
    I’m going to end 2011 on a seemingly unadventurous note: talking about boring old dividends...but through a vehicle for sophisticated investors that tracks a specialist index.
  • Want to Create Jobs? First Cut Capital-Gains Taxes: Amity Shlaes
    October 26, 2011 — Bloomberg View
    Along with jobs, raising taxes on the rich is one of things the Wall Street protesters feel strongly about, as Andrew Cuomo, the Democratic governor of New York, is learning all too well.
  • Supercommittee Should Not Hike Capital Gains Rate
    October 24, 2011 — Americans for Tax Reform
    The Supercommittee will be reporting on a series of policy recommendations in November. One idea they should stay far away from is a capital gains tax hike.
  • MILLER: Encouraging investment in America: The capital-gains tax should be capped and eliminated
    October 12, 2011 — The Washington Times
    Our nation is headed into a double-dip recession. The situation lends urgency to the political debate over whether investors should be rewarded or punished. The economy will have no hope of recovery so long as Washington insists on crushing the entrepreneurial spirit with a capital-gains tax that’s about to go up substantially.
  • Congressman Peter Roskam's Tax Hike Prevention Bill
    October 6, 2011 —
    Earlier this week, Congressman Peter Roskam (R-IL) introduced a new piece of tax legislation called The Tax Hike Prevention & Business Certainty Act. I asked him what this bill would do and what kind of impact this would have on businesses and the american taxpayer.
  • Attention Buffetts 'round the world
    Saturday, September 24, 2011 — Politico
    The discussion on tax policy sparked by Warren Buffett has started a global domino effect leading to “The Buffett Rule,” an attempt to extract more tax revenue from millionaires and billionaires. Unfortunately this will not resolve the fiscal mess of the U.S. or our European colleagues.
  • The ‘Buffett Rule’ is bad news for tech start-ups
    September 21, 2011 — The Washington Post
    Jackson is the CEO of CapLinked, an online platform for private investing. He previously ran the marketing team at PayPal, and is the author of the award-winning book The PayPal Wars.
  • A 'twist' for our economy
    September 8, 2011 — The Washington Post
    For the past 25 years, as interest rates declined, our propensity to borrow grew as the cost of borrowing fell. Each time the economy stalled, the Federal Reserve found it easy to restart growth by encouraging us to borrow a bit more through the "credit channel" of monetary policy. But as we work off our national credit binge, this process no longer works the way it used to.
  • Now, For Some Real Job Creation
    Wednesday, September 7, 2011 — Investor’s Business Daily Online
    Fiscal Policy: President Obama's much-anticipated jobs package reportedly costs hundreds of billions more in make-work temp jobs and food-stamp stimulus. He still doesn't get it. Those remedies didn't work last time — the unemployment rate is now higher, to say nothing of the debt — and they won't work this time.
  • Romney: My plan to turn around the U.S. economy
    Monday, September 5, 2011 — USA Today
    Barack Obama has had his turn at fixing the American economy. Millions of unemployed Americans can judge by their own experiences what he has done and failed to do. For my part, I believe America can do better.
  • GOP candidates favor ending capital-gains tax
    Sunday, September 4, 2011 — Bloomberg
    Former Utah Gov. Jon Huntsman became the latest candidate to back a zero tax rate on income from investments in a speech Wednesday, pitching the idea as part of a job-creation plan that includes what he described as a revenue-neutral overhaul of the tax system.
  • Republican Investment Tax Cutters to Outdo Bush as They Challenge Buffett
    Thursday, September 1, 2011 — Bloomberg
    At least five Republican presidential candidates support eliminating taxes on capital gains, proposing even deeper cuts than former President George W. Bush endorsed and standing in contrast to advocates of higher investment tax rates such as Warren Buffett.
  • Tax Reform Is the Swiftest Path to Growth
    August 12, 2011 — The Wall Street Journal
    'What is tax reform?" That's the Jeopardy-like question matching the answer: "The best step the government could take now to promote growth and employment." The Obama administration has been responding with "What are higher marginal tax rates and more stimulus?" But fundamental tax reform offers three key benefits.
  • Warren Buffett Is Wrong On Taxes
    July 28, 2011 — The Wall Street Journal
    The Oracle of Omaha is at it again. On July 7, Warren Buffett told Bloomberg: "I think the rich have a responsibility to pay higher tax rates." Then he groused that his wealthy friends are "paying lower tax rates than the people who are serving us the food." Mr. Buffett has been voicing this complaint for years, once observing that his personal tax rate of 17.7% is lower than that of his receptionist (30%).
  • Preparing For D-Day: When Congress Takes Your Deductions
    July 23, 2011 — The Wall Street Journal
    Some people call them "tax loopholes," while others prefer "tax breaks." In Congress, they are often called "tax expenditures."
  • Capital Gains Tax Break Threatened by Bipartisan Senate Plan
    July 21, 2011 — Bloomberg
    The bipartisan deficit-reduction plan gaining momentum in the U.S. Senate would likely require lawmakers to curtail or end the preferential tax treatment of capital gains and dividends.
  • Smaller Tax Changes on the Table
    July 15, 2011 — The Wall Street Journal
    The scope of possible tax changes in a deficit-reduction deal has narrowed so sharply in recent days that taxes might disappear from a final deal altogether.
  • Taxes Upon Taxes Upon . . .
    July 11, 2011 — The Wall Street Journal
    Obama wants $1 trillion in taxes on top of what he's already signed.
  • Deficit Talks Focus on Taxes; Democrats, GOP at Odds Over Raising Revenue as Negotiations Hit Critical Stage
    July 5, 2011 — The Wall Street Journal
    Democrats have floated ideas that could raise tax revenues by some $400 billion over the next decade as they negotiate deficit reductions with Republicans, according to people familiar with the plan, posing the most contentious issue as talks reach a critical stage this week.
  • Obama renews fight over tax increases - some big, some symbolic - to cut budget deficits
    July 1, 2011 — Associated Press Newswires
    President Barack Obama is renewing an old fight with the business community by insisting that $400 billion in tax increases be part of a deficit-reduction package. His proposals have languished on Capitol Hill, repeatedly blocked by Republicans, often with help from Democrats.
  • Obama's News Conference
    June 30, 2011 — The New York Times
    The following is a transcript of President Obama's news conference in the East Wing, as provided by the White House.
  • Long-haul effort seen for reforming U.S. tax breaks
    June 28, 2011 — Reuters News
    The desperate quest to get U.S. deficits under control has reformers looking at repealing some of the $1 trillion in special breaks scattered throughout the tax code but it could take years to end the favors.
  • GOP split over niche tax breaks
    June 23, 2011 — The Hill
    An internecine fight has broken out within the Senate Republican Conference over tax expenditures, putting Sen. Orrin Hatch (Utah), the senior Republican on the Finance panel, at odds with colleagues.
  • Biden, Congress tee up crucial week on US debt limit
    June 21, 2011 — Reuters News
    U.S lawmakers confronted a stark divide over taxes and healthcare Tuesday as they struggled to reach a budget deal this week that would allow the country to continue borrowing at rock bottom rates.
  • Ending Tax Debt Bias Favors Cash-Rich Companies Led by Chevron
    June 9, 2011 — Bloomberg Government
    Attempts to reduce the bias in the tax code toward debt financing could help companies with track records of generating cash, such as Chevron Corp., and hurt companies with relatively higher debt loads, such as Verizon Communications Inc., according to a Bloomberg Government study.
  • Want More Jobs? The Ideas Are Out There
    June 7, 2011 — Investor’s Business Daily
    Employment: The latest talking points from the Democrats on the slumping economy and jobs recession go like this: Gee, we've tried everything, but nothing works — and Republicans haven't put forward any ideas at all.
  • LTE: A little clarification on capital gains
    May 27, 2011 — The Asbury Park Press
    In the May 20 Asbury Park Press, your featured letter writer took issue with the tax treatment of capital gains, “Low capital gains tax rate for wealthy must be raised.’’ He specifically said that someone could start a limited liability corporation, pay himself a meager salary and take the rest of the income as a capital gain, taxed at a 15 percent rate.
  • A 62% Top Tax Rate?
    May 26, 2011 — The Wall Street Journal
    In the May 20 Asbury Park Press, your featured letter writer took issue with the tax treatment of capital gains, “Low capital gains tax rate for wealthy must be raised.’’ He specifically said that someone could start a limited liability corporation, pay himself a meager salary and take the rest of the income as a capital gain, taxed at a 15 percent rate.
  • The Graph That All Tax Hike Mystics Need to Grapple With
    May 25, 2011 — The Heritage Foundation Blog
    People often remember the entire decade of the ’90s as a period of robust economic growth. Economic growth was so impressive in the latter half of the ’90s, in fact, that some claim the Clinton-era tax hikes spurred the economy to prosper. But was that actually the case? Did tax hikes really lead to a stronger economy?
  • Obama's tax piracy policy prevents honest debate on who pays how much
    May 15, 2011 — The Washington Examiner
    Sen. Bernie Sanders, the avowed socialist from Vermont who filibustered extending the Bush tax cuts, doesn't understand that before President Obama was even elected, the top 1 percent of income earners already paid more in federal income taxes than the bottom 95 percent combined.
  • Ten Benefits of Cutting the U.S. Corporate Tax Rate
    May 11, 2011 — The Tax Foundation Report
    There is near unanimous bipartisan agree¬ment in Washington that the U.S. corporate tax rate is out of step with rates levied by most industrialized nations and that America's global competitiveness is suffering as a result. What seems to be lacking to fix the problem, however, is a sense of political urgency and a broader understanding of the substantial economic ben¬efits that a lower corporate tax rate will generate.
  • Obama's Soak-the-Rich Tax Hikes Won't Work
    April 14, 2011 — The Wall Street Journal
    President Obama's response to congressional efforts to curb runaway federal spending is to emphasize, once again, his resolve to greatly increase tax rates on married couples whose joint incomes are above $250,000. This insistent desire to raise taxes — which he repeated in a speech yesterday while complaining about "trillions of dollars in . . . tax cuts that went to every millionaire and billionaire in the country" — is a distraction. It won't solve our nation's fiscal problem.
  • Make the Bush Tax Cuts Permanent
    March 16, 2011 — The Wall Street Journal
    By the end of last year, President Obama was faced with the utter failure of his economic policies. The unemployment rate in mid-December was 9.8%, marking the 16th straight month it was at 9.5% or above — the longest run since the Great Depression.
  • Obama’s Budget Plan Complicates Talks on Corporate Tax Overhaul
    February 15, 2011 — Bloomberg
    Feb. 15 (Bloomberg) — President Barack Obama renewed his call to raise taxes paid by U.S.-based multinational corporations and oil and gas companies, complicating efforts to overhaul the corporate tax code this year.
  • The Cee Lo Green Budget
    February 15, 2011 — The Wall Street Journal
    This was supposed to be the moment we were all waiting for. After three years of historic deficits that have added almost $4.5 trillion to the national debt, President Obama was finally going to get serious about fiscal discipline. Instead, what landed on Congress's doorstep on Monday was a White House budget that increases deficits above the spending baseline for the next two years. Hosni Mubarak was more in touch with reality last Thursday night.
  • Tax-Cut Extension Vote in House Hinges on Estate-Tax Dispute
    December 16, 2010 — Bloomberg Businessweek
    U.S. House plans to vote on President Barack Obama’s $858 billion agreement to extend Bush- era tax cuts were delayed today because of a procedural dispute over the rules for debate. Many House Democrats opposed a debate structure offered by the Rules Committee that would have required lawmakers who want to increase the estate-tax rate in the bill to simultaneously approve the entire tax-cut measure…The $858 billion tax-cut plan extends through 2012 all Bush-era tax reductions on income, capital gains and dividends.
  • Obama urges Congress to pass tax-cut package
    December 15, 2010 — Reuters News
    President Barack Obama's sweeping plan to extend expiring tax cuts for millions of Americans headed for overwhelming passage in the Senate on Wednesday as it moved through Congress. While the Senate neared a rare bipartisan vote on the bill to renew all Bush-era income tax breaks and add provisions to stimulate the economy, House Democrats mulled ways to pull back on some of the measure's tax breaks for the wealthy. But even liberal House Democrats acknowledged there might not be enough support to significantly alter the legislation brokered by Obama and congressional Republicans that includes expanding inheritance tax breaks for the wealthy…The tax plan extends for two years all Bush-era individual tax rates, prevents a spike in taxes on capital gains and dividends and renews long-term insurance for the jobless, while providing new tax relief for students, working families and businesses.
  • Senate to Consider Tax-Cut Bill That Would Add $857 Billion to U.S. Debt
    December 10, 2010 — Bloomberg
    Senate leaders released an agreement crafted by the White House and Republicans to sustain Bush-era tax rates through 2012, set the estate tax at the lowest rate in 80 years, extend jobless aid and cut payroll taxes by 2 percentage points. The legislation would add $857 billion to the federal debt over 10 years, government analysts said. Senate Majority Leader Harry Reid introduced the legislation late yesterday after three days of lobbying by Democrats to include measures excluded from the framework announced Dec. 6 by President Barack Obama…The measure would keep the reduced tax rates enacted in 2001 and 2003 on income, capital gains and dividends from expiring on Dec. 31. That would preserve the current 15 percent rate for most dividends and capital gains as well as the 10, 15, 25, 28, 33, and 35 percent income-tax rates.
  • Setting Up Wall Street's Next Tax Trade: Short Or Long, Tax Compromise Is a Big Win For Wall Street
    December 9, 2010 — The Wall Street Journal
    This week's tax compromise between the White House and congressional Republicans is a big win for Wall Street. The deal extends the lower tax rates on dividends and capital gains. That should provide investors incentive to stay in the market —or get in if they were uncertain. Big bonuses and compensation packages are safe for at least two years, with the extension of the Bush-era cuts on high-income earners. That is the short-term outlook. A long-term part of the agreement also is good for Wall Street. The compromise takes baby steps toward two end-game goals: One is obvious, and the other has been dormant since the early part of Bush's second term. If Republicans compromised at all, it was with the sacrifice of permanent tax cuts: income taxes and the capital gains and dividend cuts that now set to expire in two years. That concession was almost a given considering the political pressure on President Barack Obama. A permanent extension was just not going to happen.
  • Deal Struck on Tax Package: Grand Bargain Includes One-Year Drop in Wage Levy, Estate Tax of 35%
    December 7, 2010 — The Wall Street Journal
    President Barack Obama reached agreement Monday with Republican leaders in Congress on a broad tax package that would extend the Bush-era income tax cuts for two years, reduce worker payroll taxes for one year and give more favorable treatment to business investments…The deal would extend a raft of business tax breaks, including credit for spending on research. It would extend current tax rates on capital gains and dividends for two years, including for higher earners. It would also maintain protection for middle-class families from the alternative minimum tax.
  • Obama Cuts a Deal with GOP on Taxes
    December 6, 2010 — National Journal
    Republicans get two more years for all Bush-era rates. The president gets a mixed bag, including an extension of unemployment benefits and one angry Democratic base. President Obama announced the outline of a deal struck with Republicans on tax cuts on Monday night. President Obama on Monday announced a “framework for a bipartisan agreement” with congressional Republicans that would extend all Bush-era income tax cuts for two years in exchange for a grab bag of tax cuts and incentives favored by the White House. The proposal must now overcome the ire of incensed Democrats in both chambers…Republicans agreed in principle to a host of items—a payroll-tax cut in 2011, extending unemployment insurance 13 months, a two-year patch for the alternative minimum tax, and an expanded schedule for business expensing—in exchange for a two-year extension of all reduced income tax rates and lower rates on capital gains and dividends, White House officials said.
  • House passes middle-class tax bill with three Republicans supporting
    December 2, 2010 — On the Money—The Hill Blog
    The House passed by a vote of 234-188 a measure that permanently extends expiring middle-class tax cuts and provides a patch for the alternative minimum tax…The measure passed Thursday permanently extends income tax breaks for households making $250,000 a year or less and permanently lowers the capital gains and dividends rates for the same income group at a cost of nearly $100 billion over 10 years. Under the bill, income tax rates along with capital gains and dividends rates would increase to pre-2003 and pre-2001 levels for those in higher tax brackets. Capital gains rate would revert to the pre-tax cut rate of 20 percent and the dividend rate would revert to the pre-tax cut ordinary income rates.
  • Delaying Tax Vote Could Crash Stock Market
    December 2, 2010 — U.S. News and World Report
    Failure by Congress to extend the Bush tax cuts, especially locking in the 15 percent capital gains tax rate, will spark a stock market sell off starting December 15 as investors move to lock in gains at a lower rate than the 20 percent it would jump to next year, warn analysts. While it is unclear how bad the sell off could be, it could wipe out the year's gains, they warn."Capital gains tax rate will increase from 15 to 20 percent if the tax cuts are not extended. The last time the capital gains tax rate increased--on Jan. 1, 1987 from 20 to 28 percent--investors realized their gains at the lower tax rate," said Daniel Clifton at a Washington partner at Strategas Research Partners. "We would expect a similar effect this time around as investors see the tax rate going up and choose to realize their gains and incur the 15 percent tax."
  • US tax battle to go down to the wire
    November 29, 2010 — Reuters
    President Barack Obama and U.S. lawmakers have one month left to clinch a deal to renew Bush-era tax cuts set to expire Dec. 31 for virtually all taxpayers… A one- to three-year extension of all current rates may be the most likely outcome, given that Republicans and Democrats are at loggerheads over an extension of lower rates for the wealthy… A compromise on extending all of the Bush-era tax cuts would also include extension of lower rates on dividends and capital gains, now taxed at 15 percent. Obama proposes to raise those taxes for high earners to 20 percent in 2011, but if Congress fails to act before Dec. 31, the rates for dividends for high earners jumps to 40 percent, a prospect worrying some companies and investors.
  • Lame-duck Congress has big tax-cut decision to make
    November 28, 2010 — USA Today
    ...As 2010 winds down, there are still unresolved issues the current Congress has to deal with that have potential market-moving impact. The biggest uncertainty: Will lame-duck lawmakers extend the Bush-era tax cuts before they expire on Dec. 31? "It is still a wild card," says Edward Yardeni, president of Yardeni Research. If the lower rates are allowed to expire, tax rates on worker pay, as well as stock dividends and capital gains, will revert back to higher prior levels. Investors warn that raising taxes now would put downward pressure on the nation's economy at a time of subpar growth. "Unless Congress acts," Yardeni says, "workers across the income spectrum could see sharp reductions in take-home pay in January." It could push stocks down, as hopes of a compromise helped drive stocks back to two-year highs.
  • Wanted: A Cap Gains Kick Start
    November 23, 2010 — Investor’s Business Daily
    The White House's lack of understanding of how new businesses and jobs are created is one of the gravest dangers our economy faces today. A telling case in point: the coming increase in capital-gains taxes.
  • Extending Dividends And Capital Gains Tax Cuts Will Spur Economy
    November 22, 2010 — Hartford Business Journal
    ...There is a significant economic benefit to maintaining current qualified dividend and capital gains tax rates as both have a profound impact on investment behavior. Favorable tax rates encourage investment in companies that in turn grow, create jobs and drive economic expansion. Increasing those taxes could drive investors to the sidelines again, when they are just beginning to cautiously return to the market. Allowing tax rates to spike at the end of this year would severely hinder economic improvements so painfully gained in the last 18 months. Of course, continuity and predictability in tax treatment helps facilitate economic growth regardless of the state of the economy. But to change tax treatment just at the point when the economic recovery has begun to take root simply does not make sense.
  • Investors Need Tax Certainty
    November 17, 2010 — Huffington Post
    Uncertainty. It's the reoccurring theme reverberating throughout our economy at the moment. It's on the minds of politicians, business owners, and American families. Recent economic data also suggests that uncertainty is having a material impact on growth… But key contributors to our economy: financial markets, investors, businesses and families are still unclear over what their tax burden will be next year. Congress has an opportunity and responsibility to address this important issue before the end of the year.
  • The public spoke, and it wants jobs
    November 17, 2010 — The Hill
    ...In the waning days of this Congress, we believe there ought to be bipartisan agreement on at least one important element of the Bush tax cuts: Extending the current tax rates for capital gains and dividends. This is Congress’s opportunity to make an immediate and important contribution to job creation, business investment and the economic recovery in general.
  • Uncertainty makes year-end tax plan anyone's guess
    November 15, 2010 — Associated Press
    The lack of action in Congress on the Bush-era tax cuts has turned routine year-end tax advice on its head. Typically at this time of year, advisors offer up recommendations designed to reduce the taxes you'll have to pay - or increase your refund - when you file your return. But the lingering question about whether tax rates will go up in 2011 has made it more difficult to offer sound advice. If tax rates were certain to rise, savvy individuals would want to make different moves than if rates stay where they are.
  • A Progrowth Agenda for Congress
    November 12, 2010 — National Center for Policy Analysis
    Uncertainty about future public policies coming out of Washington, D.C., and the prospect of huge tax increases is stifling potential recovery and job creation. Business owners do not know what capital, labor or facilities will cost if they expand - or what their personal tax rates will be. The most important step Washington can take to spur recovery is to immediately and permanently reduce taxes on capital and labor.
  • Bush Tax Cuts Likely to Stay in Place Despite the Spitballs: Neither Republicans nor the White House will get everything they want out of the deal
    November 12, 2010 — National Journal
    Once the White House and Republicans stops firing spitballs at each other over the Bush tax cuts, the two sides will inevitably hammer out a deal. The question is, what kind? It’s a safe bet that no one’s going to get everything they want. So the most likely outcomes are either that all of the tax cuts will be extended for a limited period of time or that the over-$250,000 cuts will be extended temporarily while those for lower incomes will be made permanent. Either way, Obama and the Republicans will have to compromise quickly before taxes are raised on an already angry electorate.
  • Tax-Cut Talks Would Include Dividends and Capital Gains
    November 4, 2010 — Reuters
    President Barack Obama is open to talks with Republicans about extending all of the Bush-era tax rates, a spokesman said Thursday, two days after his party suffered big losses in congressional elections… A compromise on extending all of the Bush-era tax cuts would also include extension of lower rates on dividends and capital gains, now taxed at 15 percent. Obama proposes to raise those taxes for high-earners to 20 percent in 2011, but if Congress fails to act before Dec. 31, the rates for dividends for high earners jumps to 40 percent, a prospect worrying some companies and investors.
  • Raising dividend tax rates will have its consequences
    November 3, 2010 — South Florida Sun-Sentinel
    If Congress fails to act, the tax rate on dividends will soar as high as 39.6 percent come Jan. 1. That's when the current federal income tax rate on dividends, at 15 percent for most taxpayers since 2003, will expire unless lawmakers take action when they return to Washington this month. While the implications for personal investments are clear, a dividend tax rate hike could lead to additional unintended consequences. The fact is, lower dividend tax rates are good for investors, consumers, American businesses and the recovering U.S. economy.
  • Election Promises Tax Clarity For Advisors
    November 3, 2010 — Dow Jones News Service
    With another election in the books, financial advisors are breathing a sigh of relief. Not because the Republicans won the House or the Democrats kept the Senate, but because many hope a host of tax issues the government has been too timid to deal with will soon be settled
  • Deal or punt decision on Bush tax cuts is Obama's
    November 1, 2010 — Associated Press
    Will Congress extend the Bush tax cuts into 2011 in the weeks after Tuesday's election or let the automatic increase start cutting into most people's paychecks early next year? It's really pretty much up to President Barack Obama
  • Investment Taxes: Will They Sting?
    October 9, 2010 — Wall Street Journal
    Much has been made of the possibility of higher taxes on the wealthiest among us next year. But what will be the tax rate on investment income—interest, dividends and capital gains—for taxpayers who aren't in the top brackets?
  • Investors Wary of Tax Brawl
    October 5, 2010 — TheStreet
    No matter the outcome of the midterm elections next month, investors need just one more thing out of the lame-duck Congress before year-end: A decision on taxes.
  • Obama’s Investment Tax Hike Will Harm the Economy
    October 1, 2010 — U.S. News & World Report
    ...The debate over the expiring Bush-era tax cuts on the wealthy has dominated the recent headlines, but a more economically ominous tax debate looms. To businesses and investors--two of the main engines of job growth--President Obama’s proposed tax increase on capital gains and dividends is the central concern.
  • More Democrats Urge Broad Tax Breaks
    September 29, 2010 — Wall Street Journal
    Forty-seven House Democrats have signed a letter to Speaker Nancy Pelosi urging that tax rates on capital gains and dividends be maintained at the current level of up to 15% for all earners...The letter urging extension of the tax breaks for dividends and capital gains joins another letter to Mrs. Pelosi, signed earlier this month by 31 House Democrats, that called for a temporary extension of all the tax breaks for ordinary income.
  • Tax Debate Also Involves Dividends, Capital Gains
    September 28, 2010 — NY Times
    The debate over what to do about the expiring Bush-era tax cuts has focused mainly on income tax rates and the fight between Democrats and Republicans over maintaining the tax breaks for the wealthiest Americans. But in a letter to the House speaker, Nancy Pelosi, 47 rank-and-file Democrats urged Congressional leaders to maintain lower tax rates on dividends and capital gains that are also due to expire on Dec. 31.
  • 47 Dems call for freeze on investment taxes
    September 28, 2010 — The Hill
    Forty-seven House Democrats have signed a letter calling on Speaker Nancy Pelosi (D-Calif.) to extend the current tax rate on capital gains and dividends. "By keeping dividends and capital gains tax rates linked and low for everyone, we can help the private sector create jobs and allow seniors and middle-class households to save and invest more," the letter states.
  • US tax battle to go down to the wire
    September 27, 2010 — Reuters
    U.S. Democrats are postponing a vote on renewing Bush-era tax cuts until after the November elections, when Republicans may gain several congressional seats immediately. Tax rates for all Americans, including top rates for dividends and capital gains, rise unless Congress acts by the end of this year.
  • Tax-Cut Vote Likely Set For After Elections
    September 26, 2010 — Washington Post
    The White House and congressional Democrats conceded Sunday that they will probably wait until after the Nov. 2 elections to vote on a plan to prevent tax rates from rising next year for the vast majority of Americans.
  • 'Consumers Are Paralyzed' Over Tax Doubt
    September 24, 2010 — Wall Street Journal
    Congress halted plans to pass a major tax bill before the November elections, leaving taxpayers and financial advisers unsure of how to plan for the future...Meantime, "consumers are paralyzed," said Dean Barber, a planner who heads the Barber Financial Group near Kansas City. "They have money to spend but they aren't going to until they know where the tax burden will lie next year."
  • Extending dividend income and capital gains tax rates would help economic recovery
    September 23, 2010 — The Hill
    As our nation struggles to recover from its worst economic period since the Great Depression, rekindling economic growth and private sector job creation should be at the top of the congressional agenda. Unfortunately, a lack of bipartisanship in Washington has not served our economy well. In an effort to put our economy back on track, we need to extend the current tax rates for dividend income and capital gains before they expire.
  • Taxing dividends more would hurt everyone
    September 23, 2010 — Charleston Daily Mail
    ...While much of the talk has centered on personal income tax rates, the biggest hike would be to the tax on dividends. Unless Congress acts, the tax rate would rise from 15 percent to 39.6 percent on Jan. 1. That is a 164 percent tax increase, and it would hit all stockholders, regardless of income. The Heritage Foundation said such a tax increase would send stock values plummeting by $211 billion, with much of that lost value in stocks held by retirees or by people saving for retirement. Households, non-profit organizations and corporations would see the value of their portfolios fall by $77 billion, the foundation reported. Mutual funds would lose an additional $43 billion, and so on down the line.
  • Cap Gains Taxation: Less Means More
    September 21, 2010 — Wall Street Journal
    ...Congress is deliberating on what to do about the "Bush tax cuts"—the reductions in income, capital gains and dividend taxes legislated in 2001 and 2003—currently set to expire at the end of this year. The recession may officially be over, but what Washington does on tax policy still matters for an economy that's creating very few net new jobs and is stuck with an unacceptably high unemployment rate and record-high federal budget deficits of over 9% of GDP.
  • Companies push on dividend tax relief
    September 15, 2010 — CNN Money
    ...The tax cuts lowered the tax rates on capital gains and dividends to 15%. If Congress does nothing, the capital gains tax rate will revert to 20% and dividends would again be taxed as ordinary income -- as much as 40% for the wealthiest taxpayers. So companies that see a threat from higher investment tax rates have formed advocacy groups with progressive-sounding names… Also pushing is the Alliance for Savings and Investment, which includes about 25 companies and groups including insurer Mass Mutual, telecom provider Qwest and the U.S. Chamber of Commerce.
  • Dividends and capital gains hostage to tax impasse
    September 14, 2010 — Reuters
    The fiery debate over extending tax cuts for the wealthiest Americans has diverted attention in Washington from a major issue for investors -- a potential rise in taxes on dividends and capital gains… If Congress does not act, income taxes will rise next year -- and so will the rate on dividends, to as much as 40 percent from the current 15 percent.
  • Renewing hope for the American dream-Ending threat of tax hikes would relieve anxiety nationwide
    September 3, 2010 — The Washington Times
    Things are bad - and they are about to get worse. On Jan. 1, Americans will face the biggest tax increase in history. Marginal income tax rates will increase for every taxpayer. The capital gains rate will climb 33 percent. Dividend rates will jump by as much as 164 percent… Unless Congress acts to extend existing tax rates, American workers and business owners will fork over an additional $2.6 trillion in higher taxes over the next decade, as estimated by the Congressional Budget Office, despite the fact that President Obama's former economic adviser, Christina Romer, tells us that "tax increases are highly contractionary.”
  • Uncertainty of Bush tax cuts affects hiring, study states
    September 2, 2010 — On the Money-The Hill Blog
    Congress' inability to make a decision about the fate of Bush-era tax cuts is contributing to the unemployment crisis facing the country, according to the report "Labor Day 2010" by the National Association of Manufacturers (NAM). "Small businesses are America's job creators, responsible for 60 percent of the net new jobs created in the last decade," the report states. "But uncertainty about looming tax hikes has stunted employment growth and until Main Street begins to hire, the unemployment rate will remain unacceptably high."
  • Pence says Republican majority would move first to extend Bush tax cuts
    September 2, 2010 — The Hill’s Blog Briefing Room
    House Republicans' first move in the majority would be to extend tax cuts set to expire at the end of the year, House GOP Conference Chairman Mike Pence (ind.) suggested Wednesday evening. Pence, the third-ranking Republican in the House, said that House Republicans would look to extend the tax cuts they helped President George W. Bush pass in 2001 and 2003, tax cuts which are set to expire at the end of the year.
  • Odds Brightening For Tax Cut Extension
    August 31, 2010 — Forbes
    Washington, D.C., became intensely angry at British Petroleum during the Gulf oil spill, partly because BP was stingy with information. Washington should remember its anger, because that's what many American investors and businesses leaders feel right now about the lack of information about what tax rates will be in 2011.
  • NABE Survey: Most Economists Favor Extending Bush Tax Cuts
    August 30, 2010 — The Real Time Economics-The Wall Street Journal Blog
    Most U.S. economists want the Bush tax cuts to be extended given growing concerns about the strength of the recovery, but a survey released Monday showed divisions on what path the Federal Reserve should take. At least 60% of economists surveyed by the National Association for Business Economics said lower tax rates on capital gains and dividends should not be allowed to expire as provided under current law.
  • Dividend tax hike is next jobs killer
    August 29, 2010 — The Detroit Free Press
    Congress must act soon to prevent taxes on dividend income from more than doubling Jan. 1, from a maximum rate of 15% to a maximum rate of nearly 40%. The tax increase would create a drag on the economy at a time when nearly 14.6 million Americans are unemployed. It will harm our energy industry in particular, a key to manufacturing and transportation, since energy companies tend to distribute dividends and rely heavily on the value of their stocks to reduce the cost of capital needed to fund infrastructure. The resulting increase in energy costs will funnel its way through the economy, reducing production and adding to our employment woes.
  • Taxing Times for U.S. Investors
    August 26, 2010 — The Wall Street Journal
    Another uncertainty facing U.S. investors: impending tax-law changes. If Bush tax cuts expire as scheduled in 2011, long-term capital-gains rates will jump from 15% to 20%, and dividends will again be taxed as ordinary income, not at 15%. Are asset markets being pressured as a result? It is hard to say definitively, of course, as investors have economic worries that probably outweigh tax concerns. But at the margin, the tax uncertainty is increasing incentives to sell, especially for the well-heeled.
  • Why we must keep dividend taxes low
    August 26, 2010 — The New Jersey Record
    THE DIVIDEND – the part of a company’s profits paid directly to shareholders – has long been a pillar of the U.S. economic system. For millions of Americans, a dividend is one of the most prized returns on their hard-earned money. It is especially important for retirees and other people on fixed incomes. These returns will be jeopardized, however, unless Congress acts soon to prevent a hefty tax increase on dividends. Today’s lower dividend tax rates are set to expire at the end of the year. At stake is not small change. Dividends taxed now at a rate of 15 percent will face a maximum tax of almost 40 percent.
  • Tax increase will hurt students, businesses
    August 25, 2010 — The Tampa Tribune
    Unless Congress acts by Dec. 31, the 2003 federal bill that established a 15 percent tax rate for dividends and capital gains will expire. If Congress fails to write new legislation to do this, automatic tax increases will begin in January. These tax increases will cause the dividends tax rate to increase by as much as 164 percent and the maximum capital gains tax rate to increase by as much as 33 percent. Keeping the current capital gains and dividend tax rates would give employers economic stability to create jobs for our graduates.
  • Individuals Directly Saved $274 Billion on Dividend Tax Cut, But Payback Time Is Coming
    August 23, 2010 — Bloomberg Businessweek
    I am estimating the qualified dividend tax cut savings from 2003 until year-end 2010 have saved direct individual owners of S&P 500 issues $140.70 billion. For the full universe of U.S. domestic common stocks I am estimating another $133.77 billion in savings, for a total of $274.47 billion over the 8 year period. In four months a series of temporary tax cuts initiated under former President Bush in 2003 will expire, resulting in tax rate increases for individuals for capital gains (holdings of at least one-year) and qualified dividends.
  • Tax Reform Would Pay Dividends
    August 23, 2010 — Carolina Journal Online
    If you want to know why the U.S. economy remains so weak, with anemic employment trends in the private sector and lots of investors and entrepreneurs staying on the sidelines, consider just this one factor: unless Congress and the Obama administration change course, the effective tax rate on investment income received in the form of dividends will soon rise to 68 percent.
  • Camp: Seniors hit hard by expiring Bush tax cuts
    August 18, 2010 — On the Money-The Hill Blog
    House Ways and Means ranking member Dave Camp (R-Mich.) released data on Wednesday showing senior citizens will face a significant tax increase if Democratic leaders fail to extend at least part of the tax cuts enacted by President George W. Bush. Their findings show that seniors will be hit, on average, with a $1,700 tax hike if taxes on capital gains and dividends increase, which is slated to take place in January.
  • Business fights higher capital gains, dividends tax rates
    August 16, 2010 — Washington Business Journal
    Americans will invest less in U.S. businesses unless Congress prevents a scheduled tax increase on capital gains and dividends. That's the argument business groups are making as the calendar creeps closer to Jan. 1, when the tax rate on most capital gains is scheduled to increase from 15 percent to 20 percent. The tax rate on qualified dividends will increase from 15 percent to the tax rate in effect for each taxpayer's ordinary income, which could range up to 39.6 percent next year.
  • Anthony F. Earley Jr.: Now not time to raise dividend taxes
    August 10, 2010 — The Detroit News
    In 2003, Congress passed an important law -- the Jobs and Growth Tax Reconciliation Act -- that temporarily reduced the individual tax rate on dividend income from almost 40 percent to 15 percent, which is consistent with the rate paid on capital gains. Currently, taxpayers in the 10 percent and 15 percent tax brackets pay no taxes on their dividend income. The 15 percent dividend tax rate, which was extended by Congress in 2006, is set to expire at the end of this year. For the millions of Americans who currently receive dividends from their investments, this means that the taxes they pay on this income could surge by 164 percent unless Congress takes steps to stop a dividend tax hike. As the nation struggles to recover from one of the worst economic periods since the Great Depression, now is not the time to discourage Americans from investing in dividend-paying companies. Instead, Congress should encourage long term investment in our nation's economy and future.
  • Fairness and the Capital Tax Fetish
    August 9, 2010 — The Wall Street Journal
    No serious economist thinks higher dividend and cap gains taxes are efficient ways to raise revenue. The tax on dividends, for example, is currently 15%, but it could increase to as high as 39.6% if the 2001 and 2003 tax cuts expire. On top of this, a new 3.8% tax on investment incomes for high-income earners begins in 2013 to help pay for ObamaCare. The administration's arguments for higher taxes on capital center on fairness and the need for deficit reduction. These arguments are seriously mistaken.
  • Higher taxes on dividends will discourage investment and retard economic recovery
    August 9, 2010 — The Hill
    Before the end of this year, Congress must address the huge impending tax hikes that will go into effect on January 1st if no action is taken. These increases will occur because tax bills passed in 2001 and 2003 temporarily slashed rates in order to stimulate an economy that was mired in a mild recession. The top marginal tax rate will go back to 39.6 percent from 35 percent, with corresponding increase in rates for lower tax brackets. Perhaps the most worrying aspect of the pending tax increases is the treatment of dividend income. Under current law, stock dividends are taxed at a maximum rate of 15 percent. But if the tax preference for dividend income is removed, the result would be a 164 percent tax hike for some investors. Contrary to the conventional wisdom that lower dividend tax rates only benefit the wealthy, just about anyone who owns a 401(k), 403(b), IRA or pension plan is benefiting from the current tax regime.
  • Where will the needle land on the estate tax?
    August 8, 2010 — Investment News
    Beyond the estate tax, the question of renewing the Bush-era tax cuts is creating deep political fissures. Several measures that are important to advisers and investors are set to expire at the end of the year if Congress doesn't act. Those include reductions in the marginal tax rate, as well as those on capital gains and dividends. The Alliance for Savings and Investment, which represents companies and trade associations, is fighting to maintain the 15% tax rate for capital gains and dividends. “Keeping the dividends and capital gains rate tied together is extremely important,” said Jim McCrery, a partner at Capitol Counsel LLC and a spokesman for the alliance. Without the parity, “you're going to tip the scales in the minds of many investors toward stocks that appreciate in value rather than stocks that have a high dividend but less capacity for longer-term share value appreciation.” With higher rates on dividends, companies might decide not to distribute them.
  • Dividends Rise, Tax Hikes May Follow
    August 2, 2010 — Bloomberg Businessweek
    U.S. shareholders are seeing companies boost dividends again, after two years of sharp declines in payouts. However, at the same time, taxes on their dividends could be heading higher, taking a bite out of shareholders' income and potentially hurting the performance of dividend-paying stocks.
  • Congress' Best Stimulus Is To Stop Dragging Its Feet
    August 2, 2010 — Forbes
    The nascent US economic recovery would be halted in 2011 if Congress fails to extend the Bush tax cuts for the wealthiest Americans, analysts at Deutsche Bank said. "In a worst-case scenario, allowing the Bush tax cuts to expire and failing to fix the AMT could result in (1.5 percent) of fiscal drag in 2011 on top of the 1 percent fiscal drag we expect to occur as the Obama fiscal stimulus package unwinds," Deutsche said in a note to clients. "If the recovery remains soft/tentative through early next year, this additional drag could be enough to push the economy to a stalling point." While the US is headed toward unmanageable debt levels, now is not the time to start tightening the money supply, the analysts said.
  • Letting Bush Tax Cuts Die Would Kill Recovery: Analysts
    July 29, 2010 —
    The nascent US economic recovery would be halted in 2011 if Congress fails to extend the Bush tax cuts for the wealthiest Americans, analysts at Deutsche Bank said. "In a worst-case scenario, allowing the Bush tax cuts to expire and failing to fix the AMT could result in (1.5 percent) of fiscal drag in 2011 on top of the 1 percent fiscal drag we expect to occur as the Obama fiscal stimulus package unwinds," Deutsche said in a note to clients. "If the recovery remains soft/tentative through early next year, this additional drag could be enough to push the economy to a stalling point." While the US is headed toward unmanageable debt levels, now is not the time to start tightening the money supply, the analysts said.
  • Report shows 8.6 percent drop in stock market if Bush tax cuts expire
    July 29, 2010 — On the Money, The Hill Blog
    The scheduled tax increase on capital gains and dividends at the end of the year will cause an 8.6 percent drop in the Standard & Poor’s 500 Index, according to a report by Barclays Capital. The Barclays’ study focused on the S&P index and how it would be affected by the 15 percent tax on capital gains and dividends resetting to 20 percent for capital gains and 39.6 percent on dividends, which is expected to occur Jan. 1 when all tax cuts enacted by President George W. Bush expire.
  • Bush-Era Tax Cuts a Likely Campaign Theme
    July 26, 2010 — The Wall Street Journal
    Democrats are aiming to push legislation extending Bush-era middle-class tax cuts ahead of midterm elections. But with Republicans and several Democrats advocating a similar extension for high-earners, too, prospects for passage before November balloting appear uncertain…The looming battle over taxes and spending is likely to be a dominant one in Washington, stretching into next year, as the government begins to address chronic budget deficits.
  • The calamitous effects of Obama's tax hikes
    July 26, 2010 — Examiner Editorial, Washington Examiner
    ...Unless Obama and Congress reverse their declared course and approve new legislation to extend the Bush tax cuts of 2001 and 2003, they will expire on Jan. 1, 2011...that means everybody who pays taxes&mash;about half of all adult American&mash;will see steep tax increases come New Year's Day. Those in the lowest tax bracket of 10 percent on adjusted gross income will see their levy go to 15 percent. Folks in the 25 percent bracket will face a 28 percent levy. And those in the old 28 percent bracket and the 33 percent bracket will go to 31 percent and 36 percent, respectively. Finally, "rich" taxpayers in the highest current bracket of 35 percent will go to 39.6 percent.
  • More than 450 organizations call on Congress to maintain tax rate on investments
    July 26, 2010 — On the Money, The Hill
    House and Senate lawmakers on Monday received a letter from 453 organizations urging them to maintain the 15 percent tax rate on capital gains and dividends….The letter states that allowing these tax rates to increase will result “in one of the largest tax increases in U.S. history.” Allowing the tax rates to split could have negative consequences for investors like senior citizens who depend on dividends to pay living expenses.
  • Lower Tax Rates Boost Market
    July 26, 2010 — The Street
    While information on the economy, European bank stress tests, and corporate earnings helped to lift the markets last week, it may have been the hint that tax rates may not be going up as much as expected in 2011 that got investors the most excited. The potential for much higher tax rates on dividends and capital gains appears to be discounted by the market, suggesting a potential relief rally as the tax uncertainty is resolved.
  • Get Ready for Dividend Tax Shock
    July 26, 2010 —
    Are you ready for a 164% tax increase? It’s just around the corner. On December 31, 2010, the maximum tax on dividend income will jump from 15% to 39.6%—a 164% increase—if Congress doesn’t act to prevent this huge tax on capital. Many people will shrug their shoulders and say that the tax on dividend income is only paid by wealthy people…But it’s that kind of thinking that will likely prove disastrous in an economy struggling out of recession.
  • Barclays: End Of Bush Tax Cuts = Lower Stocks
    July 26, 2010 — Barclays
    A new research report from Barclays Capital says that the expiration of Bush-era tax cuts could drive down equity valuations by about 8 percent. The report, released today, examined the historical link between capital gains tax increases and equity valuation levels. It found that there was “enough of a relationship” between the two to suggest that allowing Bush-era tax cuts on capital gains and dividends to expire could drive the current price-to-earnings ratio of the market down from 12 to 11, a drop of 8.3 percent, or about 870 points on the Dow Jones industrial average.
  • Companies urge Congress to oppose massive tax hike on capital gains and dividends
    July 26, 2010
    The undersigned companies and trade associations strongly urge Congress to prevent a massive tax increase that will have detrimental impacts on investment and jobs in the United States. Congress should move quickly to enact legislation that would keep the capital gains and dividends tax rates at 15 percent.
  • Liberal Tax Revolt
    July 23, 2010 — Opinion, The Wall Street Journal
    There's nothing like the prospect of an electoral rout to concentrate the incumbent mind, and so all of a sudden rank-and-file Democrats in Congress are saying maybe they shouldn't let the 2003 tax rates expire after all. Now if they can only persuade their Speaker of the House, the Treasury Secretary and President Obama… who remain prisoners of their spend-and-tax dogma. Even as the Democratic tax revolt broke into the open yesterday morning, the White House rolled out Mr. Geithner to declare that the tax increases will arrive as scheduled. So the same Mr. Geithner who says the economy is weak enough that we must have new spending "stimulus" says it is strong enough to endure a huge tax increase.
  • Bernanke Says Extending Bush Tax Cuts Would Maintain Stimulus to Economy
    July 23, 2010 — Bloomberg
    Federal Reserve Chairman Ben S. Bernanke said extending the tax cuts passed during former President George W. Bush’s administration would help strengthen a U.S. economy still in need of stimulus. “In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said yesterday in testimony before the House Financial Services Committee. “There are many ways to do that. This is one way.”
  • Senator Calls For Postponing Tax Increase On Rich
    July 22, 2010 — Dow Jones Newswires
    Sen. Kent Conrad (D., N.D.), a senior Senate Democrat with influence over tax and budget policy, said that Congress shouldn't allow taxes on the wealthy to rise until the economy is on a more sound footing… His comments underscore widespread divisions among Democrats regarding how, or when, to deal with the tax cuts, which are set to expire at the end of this year.
  • Business Coalitions Zero In on Tax Increases
    July 21, 2010 — Washington Wire, The Wall Street Journal
    Businesses and advocacy groups plan to dial up pressure on Congress to block tax increases, as lawmakers prepare to head home for the August recess... The effort is being organized by a couple of coalitions. One, the Alliance for Savings & Investment, has about 25 investment group and company members; it focuses on tax relief for investors. The other organization, the Tax Relief Coalition, includes major business organizations such as the U.S. Chamber of Commerce, as well as manufacturers, contractors and others.
  • The Looming 164% Dividend Tax Hike
    July 19, 2010 — Investor’s Business Daily
    Today's reduced federal tax rates on dividend income are good for investors, consumers, American businesses and the recovering U.S. economy. But unless Congress acts now to stop a tax hike, the maximum tax rate on dividend income is set to skyrocket at the end of the year — leaping by 164% for some investors.
  • As Tax Cuts' Expiration Date Nears, Little Consensus
    July 15, 2010 — The Wall Street Journal
    President Barack Obama wants to extend the Bush-era tax cuts for the middle class only. Many House Democrats want to extend them for that group, too, but perhaps only for a year or two. Republicans, and a handful of centrist Democrats, are talking about extending all the tax cuts. Such is the confused state of play heading into one of the biggest tax debates in a decade… The uncertainty has many businesspeople sitting on their hands, because they don't know what tax rates will be next year, say business groups and economists. That is suppressing investment and hiring, surveys suggest, contributing to the economy's current sluggishness.
  • White House, US Lawmakers At Odds Over Dividend Tax Rate
    July 12, 2010 — Dow Jones Newswires
    Democrats in Congress are moving toward letting the top tax rate on dividends return to 39.6% next year, despite calls from the administration of President Barack Obama for a lower rate. That is leading to warnings from corporate America that firms will respond by reducing dividends paid to shareholders.
  • Whammo! That Was You Getting Hit With More Taxes
    July 9, 2010 — Fox Business
    Investors and savers are about to get stung, too.The maximum tax rate on long-term capital gains is set to go to 20% from 15%. Maximum rates on dividends skyrockets to 39.6%; so much for saving for the future. Bottom line, your bottom line is about to get hammered -- if Congress takes no action. If you have an accountant or financial advisor, it's probably time to call them and start talking about what you need to do to get prepared...because it's going to be an expensive 2011.
  • Voters support extending the capital gains tax cut and cutting corporate taxes.
    July 7, 2010 — Resurgent Republic
    By a 54 to 40 percent margin, voters agree that we should “keep the capital gains tax rate at 15 percent where it is today. Raising capital gains taxes now would hurt economic growth at a time when the economy desperately needs to create more jobs ,” over the argument that letting the “Bush tax cuts on capital gains expire…would raise the tax rate on capital gains from 15 to 20 percent, which would provide critically needed revenue, and ensure that the rich pay their fair share.
  • How the Expiring Bush Tax Cuts Affect You
    July 7, 2010 — Bill Bischoff THE TAX GUY,
    Right now, the maximum federal rate on long-term capital gains and dividends is only 15%. Starting next year, the maximum rate on long-term gains will increase to 20%. The maximum rate on dividends will skyrocket to 39.6% unless action is taken to limit the rate to 20%, as the president has repeatedly promised. Plan on 39.6%, and hope I’m wrong.
  • Capital Gains and Dividend Taxes: What’s Next
    June 18, 2010 — (Intelligent Investing)
    Several members have been asking me lately about taxes. Specifically, what is going to happen to the tax code next year? The Bush tax cuts are expiring this year, creating the possibility that capital gains, dividend and estate taxes will revert back to circa-2002 levels. This means tax rates could be as high as 39.6% in 2011. In response, I sent e-mails and made calls to both strategists and reporters who follow Washington politics closely. Every response confirmed what I’ve been seeing on the news wires: no progress is being made on the expiring tax breaks.
  • Congress running out of time to address dividend tax rate increase
    June 18, 2010 — The Daily Transcript (San Diego)
    At the end of this year a change in the tax laws will occur that will impact the treatment of an important part in the investment process -- dividends… With only six months remaining in the year, Congress has yet to address this situation and, unless the legislature and President Obama act soon, the rollback to previous rates will occur.
  • Rising Dividend Taxes
    June 10, 2010 — The Hill
    The U.S. will have one of the highest tax rates on dividend income in the industrialized world if Congress does not stop the expiration of the Bush tax cuts on investment income by the end of the year.
  • Tax Foundation Report Shows Harmful Effects of Higher Dividend Tax Rates
    June 7, 2010 — The Tax Foundation
    Higher U.S. Dividend Tax Rate Resulting from Expiration of Bush Tax Cuts, Health Care Reform Would Put U.S. Rate at 68 Percent, Highest Among Industrialized Countries
  • Tax Hikes and the 2011 Economic Collapse
    June 7, 2010 — Wall Street Journal
    The prospect of rising prices, higher interest rates and more regulations next year will further entice demand and supply to be shifted from 2011 into 2010. In my view, this shift of income and demand is a major reason that the economy in 2010 has appeared as strong as it has. When we pass the tax boundary of Jan. 1, 2011, my best guess is that the train goes off the tracks and we get our worst nightmare of a severe "double dip" recession.
  • Capital Gains Taxes and the Recovery
    June 4, 2010 — Wall Street Journal
    Businesses and individuals should therefore take note that the country is moving inexorably toward an increase in capital gains tax rates. This increase is not being sufficiently debated in Congress but could have a major impact on economic growth, job creation and long-term investment in America.
  • The Skinny on Fat Taxes Affecting Small-Business Owners
    June 1, 2010 — MSN Money
    Popular rhetoric holds that increasing taxes on dividends, capital gains and estates will force ultra-rich Americans to pay their fair share. The bipartisan reality is that pending changes to our nation’s tax policy are going to take their toll on small-business owners.
  • Dividend Tax Rates Could Increase to 40%
    May 21, 2010 —
    If action isn't taken by lawmakers soon, dividend taxes could revert from 15% to as high as 40%. In these days of market uncertainty, one might consider investing in dividend-paying stocks as a way to make some safe gains. But that could all change soon if Congress doesn’t act to stop a coming hike in dividend income taxes.
  • Fate of dividend tax leaves companies and investors guessing
    May 18, 2010 — Reuters
    Companies and investors can only guess whether dividend taxes for high-income Americans will skyrocket next year, a distinct possibility… Last week Ingersoll-Rand Chief Executive Officer Michael Lamach said he was inclined to boost the dividend, but was waiting for a signal from Washington. If future dividends are taxed at a higher rate, he told the Reuters Manufacturing and Transportation Summit, the company may instead use its cash for a stock buyback or acquisition.
  • Chart investment Strategy Now for 2011 Tax Changes
    May 9, 2010 —
    The months and weeks leading up to the end of the year could see more than the usual turmoil in the stock market as investors, guided by their financial planners and investment advisers, adjust their portfolios ahead of the new tax environment that they will face in 2011.
  • The Next Capital Insurgency
    May 8, 2010 — Wall Street Journal
    As the Bush tax cuts expire on Dec. 31, taxes on capital gains are set to rise to 20 percent from 15 percent. Add a new 3.8 percent Medicare tax on unearned income and the rate will hit 23.8 percent by 2013. Taxes on dividend income will nearly triple.
  • Dividend Tax Bill Arrives
    April 29, 2010 — Wall Street Journal
    As the big tax increase day of January 1, 2011 approaches, the Democrats running Congress are beginning to lay out their priorities. Get ready for bigger rate increases than previously advertised.
  • The Great Dividend-Tax Mystery
    April 24, 2010 — Wall Street Journal
    Next year, what will the top tax rate on dividends be? Investors like Clint Myers, an investment actuary in Georgetown, S.C., want to know. Some experts cite a 20 percent figure, while others say 39.6 percent, and still others talk about a tripling of the current 15 percent rate. "Lately I have seen figures citing almost any rate you can imagine," Mr. Myers says.
  • Geithner reaffirms Obama tax pledge
    April 18, 2010 — The Hill
    Treasury Secretary Timothy Geithner on Sunday reaffirmed President Obama's campaign pledge to let expire tax cuts enacted under President George W. Bush that benefit individuals earning over $200,000 and couples making more than $250,000.
  • Expiring Tax Cuts’ Fate Has Parties Strategizing
    April 14, 2010 — New York Times
    Democrats for years have vowed to let the Bush administration’s tax cuts for the wealthiest taxpayers expire as scheduled after this year, but election-year politics and the economy’s fragility could complicate matters in Congress.
  • Wall Street’s big rally sharpens focus on tax
    April 14, 2010 — The Hill
    Expiring tax breaks for dividends will be in the spotlight for the rest of the year thanks to Wall Street's rally and record budget deficits. And that’s expected to lead to a battle among Democrats over how to tax corporate profits paid to shareholders. President Barack Obama has proposed that the current rate of 15 percent on dividends be extended for most taxpayers. There are several reasons to think wealthier taxpayers will get hit with a much higher tax.
  • The Rise of Job and Savings Killers
    April 14, 2010 — Washington Times
    The maximum federal tax rate on dividends is slated to rise an obscene 189 percent (from 15 percent to 43.4 percent). The maximum tax rate on capital gains will rise by a destructive 59 percent. (These coming tax increases already are in law, courtesy of the just-passed health care bill, and the expiration of the George W. Bush tax-rate cuts at the end of this year).
  • What Will the Capital Gains Rate be in 2013?
    April 8, 2010 — The Christian Science Monitor
    My best guess is that the top tax rate on capital gains and dividends in 2013 will be almost 24 percent—a significant increase over today’s 15 percent rate. As a result, the decade-long tax holiday for investors is coming to a gradual end.
  • Higher Taxes Threaten Stock Rally
    April 2, 2010 — CNN Money
    Between the new Medicare tax on investment income and a rise in capital gains and dividend taxes, investors will face higher costs. But the overall effect on stock returns is not as cut and dry.
  • Cloudy Dividend Tax Outlook Yields Confusion
    March 30, 2010 — CNBC
    Investors and their advisers can only scratch their heads as they face an uncertain future for U.S. income tax policy, including one scenario that could send levies on dividends soaring.
  • Capital Gains Taxes Set To Rise, Crimping Investment, Savings
    March 23, 2010 — Investor's Business Daily
    Along with a partial expiration of 2003 tax cuts at year-end, rates on long-term capital gains and dividends are due to jump in two steps from 15 percent to 23.8 percent.
  • Let’s work together to protect our seniors
    March 1, 2010 — The Hill
    Dividend income comes through each quarter, when most American companies make payments to tens of millions of Americans who own shares in U.S. businesses. Right now, taxes on dividend income are low, but Congress must act to keep it that way.