"The tax cuts on dividends and capital gains have helped millions of Americans, including the many senior citizens who rely on dividends to supplement their retirement income," said Richard Hunt, SIA senior vice president, federal policy. "The record since these lower rates passed has been one of unparalleled success -- more money in the pockets of investors, economic expansion, lower unemployment, and improved corporate governance. Unfortunately, these gains are threatened by a looming sunset that will begin to erode these documented benefits."
Hunt said that because the current rates are set to expire in 2008, investors will become increasingly uncertain about future after-tax rates or return on their investments, which is why Congress must not wait to extend these lower rates. "SIA is committed to working with Senator Crapo and others to make sure the issue is addressed this year. It's too important to investors and the economy," said Hunt.
