WASHINGTON,
September 30, 2010
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Rep. Scott Garrett (R-NJ) has introduced H.R. 6330, the Preserving American Income on Dividends (PAID) Act, which would make permanent the current tax rates on dividends set to expire on January 1, 2011.
“For the sake of our economic recovery, we can’t sit back and allow the current tax rate on dividends to expire at the end of the year,” said Garrett after introducing the bill in the House. “The fallout from this historic tax increase will be a disaster for our economy. Higher rates on dividends will discourage investors from getting into the market, which in turn will deny companies the financial resources they need to grow their businesses and create jobs for Americans. With our economy already on the ropes, we can’t afford to have capital sitting on the sidelines.”
“If Congress fails to act now, the top tax rate on dividends will spike to nearly 40 percent in January, will expose nearly half of all American households to a costly tax increase and will reduce the amount of dividend payments companies make to investors,” added Garrett. “Raising the tax rate on dividends will be particularly damaging to Americans saving for retirement and seniors who rely on dividend payments as a primary source of income after leaving the workforce. Making the current rate on dividends permanent will provide individual investors and business community the certainty they need to plan and invest for the future.”
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