Don't Raise Taxes On Investment Income

The fiscal cliff is rapidly approaching for America’s seniors and millions of taxpayers across the nation. Congress adjourned without preventing the multiple tax increases scheduled for January 1, and without ending the uncertainty over fiscal policy that represents unnecessary additional risk for private investment. Unless Congress acts immediately after the November election during a “lame duck” session, the crippling effects of Washington’s procrastination will be felt across our entire economy.

Beginning next year, tax rates will soar on investment income from capital gains and dividends. The top tax rate on capital gains will jump from 15 to 23.8 percent and the top rate on dividends will nearly triple from 15 to 43.4 percent. Millions of seniors would feel the pain of these higher rates immediately. Given the low rates on interest-bearing investments such as certificates of deposit, many older investors have turned to dividend-paying stocks to supplement their income. Higher tax rates will change the equation for everyone.

Source: The Gainesville Sun

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