Congress Passes Tax Cut To Create Jobs, Grow Economy
Dramatic Cut in Double Tax on Dividends Bears Cox Stamp
See also http://policy.house.gov/doubletax
Today the United States Congress passed a tax bill that will create new jobs and jump-start the economy. Rep. Christopher Cox (R-CA), Chairman of the House Policy Committee and Chairman of the Homeland Security Committee, congratulated the House on passing a bill that includes a key ingredient he has long championed: relief from the double taxation of savings in stocks and mutual funds.
In addition to reduced tax rates on income at all levels, the agreement includes marriage penalty relief, accelerated increases in child tax credits, and increased deductions on equipment purchases for small businesses and entrepreneurs.
The bill dramatically cuts the double tax on dividends to a top federal rate of 15 percent. Chairman Cox has long advocated the repeal of the double tax. He wrote his graduate thesis on the subject in 1977, and first introduced legislation to end the double tax 11 years ago. Chairman Cox has introduced legislation to repeal the double tax on dividends three times during his tenure in Congress. Now, dividend tax relief is finally part of the tax code.
“The steep cut in the double tax on savings in stocks and mutual funds is especially good for our economy because it benefits the millions who have invested in American businesses,” Chairman Cox said. “I am grateful that Congress and the President have agreed on this key reform that will stimulate the economy and continue the growth we have seen in the last few months.”
With the dividend tax reduction, Congress also seeks to increase corporate accountability, and ultimately remove many of the current barriers to higher economic growth. The dividend tax reduction is also a victory for seniors who deserve to reap the benefits of the hard-earned income they have invested in the market. Reducing the double tax on dividends provides tax relief to nearly 10 million seniors, who rely on dividends as a source of steady income during retirement. In fact, while seniors receive only 15 percent of all U.S. income, they receive roughly half of all dividend income.
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