Response to the Senate’s passage of the HI (Medicare) tax, as part of the health care reform “fixers” package
The Alliance for Savings and Investment (ASI) issued the following statement in response to the Senate’s passage of the HI (Medicare) tax, as part of the health care reform “fixers” package. The statement should be attributed to ASI spokesperson Jim McCrery.
“The Alliance for Savings and Investment is disappointed that the House and Senate have now passed a 3.8 percent tax increase on investment income for certain taxpayers. This represents a 25 percent increase over current capital gains and dividend tax rates and adds to the uncertainty felt by taxpayers who fear another possible rate hike on investment income is just over the horizon.
Absent Congressional action, current capital gains and dividend tax rates will rise dramatically for all taxpayers on January 1, 2011, the effects of which could discourage investment and derail America’s fragile economic recovery. We are hopeful that Congress will not compound our economic problems by raising taxes on investors, entrepreneurs and retirees twice in the same year. As the Administration focuses on job growth and rebuilding our economy, maintaining current tax rates on investment income should be a vital part of achieving those objectives.”
About the Alliance for Savings and Investment:
The Alliance for Savings and Investment (ASI) is a diverse group of dividend-paying companies, investor organizations, and trade associations committed to strengthening the economy through policies that foster private savings and capital investment. ASI members include Altria, American Gas Association (AGA), Capital Research and Management Company, Edison Electric Institute (EEI), Financial Services Forum, Investment Company Institute (ICI), Securities Industry and Financial Markets Association (SIFMA) and Verizon.