ICI: Enactment of Tax Bill Extending Current Tax Rates on Investments Comes at Critical Time and Brings Certainty
Washington, DC, December 17, 2010 - ICI President and CEO Paul Schott Stevens today issued the following statement on enactment of a tax bill that will maintain and extend the current tax rates on capital gains and dividends for two years:
“We thank the Administration and Congress for coming together on the issue of extending the current tax rates on investments for 2011 and 2012. The capital gains/dividends provision provides the markets and investors with much-needed certainty during this time of economic recovery.
“The two-year extension prevents tax increases on investments by Americans saving for retirement, a home, higher education, or other personal and financial goals. We will continue to work with Congress and the Administration next year as they consider broader U.S. fiscal and tax policy.”
Without enactment of this legislation, the top tax rates on investment income were scheduled to increase from the current 15 percent on January 1, 2011 to 20 percent for capital gains and a top tax rate of 39.6 percent for dividend income.