House Votes Against Increasing Dividend Taxes
Broad Tax Measure Would Extend Through 2008 Current Rate of 15%
WASHINGTON, D.C., Dec 8 - U.S. Rep. Mark Souder voted today for House passage of H.R. 4297, the Tax Relief Extension Reconciliation Act of 2005. The bill passed the House by a bipartisan majority of 234-197.
H.R. 4297 would maintain the dividend income and capital gains tax rate at 15 percent (and zero percent for taxpayers in the 10- and 15-percent marginal income tax brackets during 2008). Barring congressional action, the dividend income rate will increase to a maximum of 35 percent, and the capital gains rate will increase to a maximum of 20 percent. These tax hikes are currently scheduled to occur after 2008. H.R. 4297 would extend the current rates through 2010 to permit better long-term financial planning.
"By maintaining the current dividend income and capital gains tax ratesrather than increasing these taxes as our opponents would likethe House voted to sustain a growing economy," Souder said. "The present tax rates are critical to investment in the American economy. In particular, they are critical to the housing market in northeast and north-central Indiana."
"The largest stockholders in the United States are now pension funds and trust funds," Souder added. "If we want to keep pension funds solvent, we simply can't afford to raise taxes."
http://souder.house.gov/News/DocumentSingle.aspx?DocumentID=37617