CBO Report Calls For A Stop To Dividend Tax Hike

On Wednesday, the nonpartisan Congressional Budget Office (CBO) issued a dire warning that the nation's economy would be plunged into a significant recession next year unless President Obama and Congress take action to avert tax hikes set to take effect in January—including a steep tax hike on dividends. The Edison Electric Institute's (EEI's) Senior Vice President Brian Wolff made clear that the new nonpartisan report echoes what has been said by tens of thousands of seniors and other hardworking Americans who have called on Congress — through the Defend My Dividend campaign — to stop a dividend tax hike for all Americans.

"Today's nonpartisan CBO report spells out in grim detail what's at stake," Wolff said. "If Congress and the president don't act soon, the tax rates on dividends will spike by nearly 190 percent—from a top rate of 15 percent today to roughly 43 percent next year. This alarming increase would squeeze the already tight budgets of millions of seniors and hardworking Americans, and would slow job creation, hindering our nation's economic recovery. With so much economic uncertainty and concern right now, lawmakers should act quickly to extend the current dividend tax rates for everyone for one year and enact comprehensive tax reform next year."

Source: HeraldOnline

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