In the News
Obama FY 2013 Budget Proposals Include “Jarring” Tax Increase on Investment Income
New dividend tax proposal could hurt taxpayers at every income level
Washington, D.C. – President Barack Obama unveiled his administration’s Fiscal Year 2013 budget today, including a proposal to raise tax rates on qualified dividends and long-term capital gains for certain taxpayers.
The Honorable Jim McCrery, Manager of the Alliance for Savings and Investment (ASI), issued the following statement on the Obama Administration budget proposal:
“The President’s plan to raise tax rates on investment income will slow capital formation and drain critical resources that fuel economic growth and job creation.
“This budget is a dangerous shift from earlier budgets that kept capital gains and dividend tax rates low and linked. Taxing dividends as ordinary income would have a jarring impact that could discourage companies from paying dividends, hurting taxpayers at every income level.
“Our tax code should promote and encourage investment here in the U.S., yet higher taxes on capital gains and dividends risk sending more capital overseas and putting America further behind our competition.”
The U.S. currently has some of the highest integrated tax rates on capital gains and dividend income among developed nations. ASI released a study last week detailing these rates and illustrating how an increase in capital gains and dividend tax rates would impact America’s ability to attract investment capital and spur economic growth. Click here to read the report.
ASI is a diverse coalition of dividend-paying companies, investor organizations and trade associations formed in support of a common goal: to promote economic recovery, growth and job creation through policies that foster private savings and capital investment.
ASI’s top legislative priority is making permanent today’s current low tax rates on capital gains and dividends to provide certainty to investors, stability to the economy and a strong foundation for long-term economic growth.