Washington, D.C., April 28, 2021 – The Alliance for Savings and Investment (ASI) released the following statement today in response to the proposal by the Biden Administration to raise tax rates on dividend income and capital gains:
“ASI urges Congress to reject proposals that will increase the tax rates on dividends and capital gains. Research suggests that higher taxes on dividends in particular will negatively impact seniors, middle-class families and workers, even if the tax increases are targeted at high-earners. Dividend paying stocks are primarily held by older, middle-income Americans. History shows that higher taxes on dividend income will lower the value of these Americans’ investments and result in fewer dividend payments.
“As America battles back from the pandemic, tax incentives for savings and investment deserve strong support. The tax code already has a double taxation problem. This proposal will make it worse by eliminating progress made over the last few years and significantly hampering U.S. competitiveness.”