Roskam Introduces Bill for Permanent Cap Gains Limits

From the office of Rep. Peter Roskam (R, Ill)…

Roskam Introduces Legislation to Permanently Cap Capital Gains and Dividend Tax Rates at 15%

Broad coalition of American job creators send letter in support; impending tax-hike would hit seniors, businesses, investors of all sizes

WASHINGTON, DC – Congressman Peter Roskam (R-IL), Chief Deputy Whip and member of the Ways & Means Committee, introduced legislation today to permanently cap the Capital Gains and Dividend Tax Rates at 15% to avoid an impending tax hike that would particularly affect American businesses, seniors, and investors of all sizes. Sen. Mike Crapo (R-ID), member of the Senate Finance Committee, is introducing companion Senate legislation.

The sunsetting of the current tax rates of the last decade, set to expire at the end of 2012, coupled with a guaranteed new 3.8% tax from the Healthcare law, starting in 2013, would mean effectively a 58% higher tax rate on capital gains and as much as a 189% higher tax rate on dividend income.

The Tax Hike Prevention & Business Certainty Act – and its companion Senate legislation, has support from a broad coalition of 27 American businesses and organizations. click here.

Roskam appeared on Bloomberg and Fox Business Network to discuss legislation he introduced to cap the Capital Gains and Dividend Tax Rates at the current 15%.

Key Excerpts

Capping the capital gains & dividends tax will help our economy:

“The U.S. economy is really in an epic struggle right now for capital formation and job creation…We have a good opportunity here to create a growth agenda to try and get us on a footing that says there’s predictability, there’s certainty, and we’re not going to raise taxes on capital gains or dividends.”

“[Businesses] are looking for predictability, they’re looking for certainty, and they’re not looking for folks moving in a direction that says more money is going to be taken by the federal government as they’re passing on accumulated wealth and prosperity within a company to their owners. So I think we have a chance here to create an environment where we ultimately grow because that’s the real remedy for long term prosperity.”

The tax hike would hurt middle income families:

“There’s a lot of political theater and drama that comes around folks at the higher end of the economic ladder… If the tax rate goes up, who loses? It’s not the wealthy person, their lifestyle’s not going to change. It’s the saver, down at the lower end of the economic ladder. So I think it’s very important that we be thoughtful and wise and predictable and come up with a tax rate that makes sense. It doesn’t makes any sense for capital gains and dividend rates to go up.”

Creating a competitive business environment:

“We need to create an environment where investors say I want to invest or seniors get the benefit of this – who are disproportionately in the market place – and where businesses say there is some predictability in this. The last thing we need to be doing is raising taxes.”

On tax reform:

“There is without question the status quo of the tax system is indefensible, it’s absurd, it’s reached the point of complexity that doesn’t serve anyone. But I would submit that a way to move forward is at least to find common ground on the idea that you’re not going to raise taxes and discourage investment, that’s not the thing to do. I think we can do this, I think we can move forward on a bipartisan basis, I think the debate has been framed. You go back to 2009 when Pres Obama was asked: do you raise taxes in a recession? And he wisely said no, you don’t do that.”

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