Tax reconciliation conferees extend capital gains and dividends relief
Washington, DC â??Tax rates on capital gains and dividends will stay lower through 2010, Idaho Senator Mike Crapo reported after the Senate-House tax reconciliation conferees came to an agreement on a measure that included the relief today. Crapo, a member of the Senate Finance Committee, authored a letter to the conferees, signed by 20 Senators, requesting that the conference report include that two-year extension relief on capital gains and dividends. Additionally, he is the lead sponsor of legislation to make the capital gains and dividend rate cuts permanent. â??The tax cuts passed in 2003 have been a major contributor to the now-robust economy and this agreement is a big step in continuing that growth,â?? Crapo said. â??By extending tax relief on capital gains and dividends now, we have provided the certainty needed by families to invest for the future needs of their children and for seniors who rely on a dividend payment to maintain their standard of living in retirement. I worked actively with my Senate Finance colleagues to ensure this relief was extended and Iâ??m pleased to see that happen today.â??According to data released today by the Joint Economic Committee, taxes paid on capital gains and dividends will be reduced for every income bracket, with the highest rate of relief going to those with an income of under $50,000 per year. The Securities Industries Association reports that more than half of U.S. households own stock and the typical investor is a middle-class person saving for retirement with a household income of $65,000. In 2003, more than 108,000 Idaho taxpayers reported capital gains income and more than 77,000 of them had adjusted gross incomes under $75,000. Also, more than 119,000 Idaho taxpayers reported receiving dividends and more than 86,000 of those taxpayers had adjusted gross incomes under $75,000.The tax reconciliation conference report has been agreed to in principle and is expected to be formally signed by the conferees shortly. It will then move to the Senate and House floors for final approval before being sent to the President for final signature into law.