American Gas - October 2010 - (Page 7)

PeoPle Trends evenTs news business interests push to retain current DiviDenD, capital Gains rates Despite complex election-year politics, industry supporters of an effort to retain the current 15 percent tax rate on dividends and capital gains are confident of a partial victory before time runs out at the end of the year, but they have serious concerns about the maximum tax rate on dividends. If Congress takes no action, dividends will be taxed at ordinary income tax rates of up to 39.6 percent and the capital gains tax rate will rise to 20 percent on Jan. 1, 2011, as tax cuts enacted in 2001 and 2003 expire. The Obama administration has proposed keeping the tax rates on dividends and capital gains at 15 percent for individuals earning less than $200,000 and couples earning less than $250,000. For higher earners, the rate for dividends and capital gains would rise to 20 percent. AGA, numerous businesses and trade associations have joined the Alliance for Savings and Investment to persuade Congress to act before the end of the year. The alliance is stressing not only the need to keep dividend and capital gains tax rates low, but also the importance of taxing both at the same rate. In a letter to President Obama, the alliance said that reestablishing unequal tax rates will exacerbate “the perverse economic incentives for corporations to utilize excessive debt financing, thus ignoring a key lesson learned from the financial crisis.” Extending the current rates for all taxpayers “would provide much-need- ed certainty to businesses, families and retirees who now face the threat of a looming tax increase during this time of continued economic and market uncertainty,” the letter said. Charles Fritts, AGA vice president of government relations, notes that AGA member companies generally attract investors because of the dividends they pay, and these firms will be hurt if the tax rate on dividends skyrockets to 39.6 percent. AGA President and CEO Dave Parker sent a letter to all AGA member company delegates asking them to organize a congressional letter- AmericAn GAs october 2010 7 http://www.brooksutility.com http://www.brooksutility.com

Table of Contents for the Digital Edition of American Gas - October 2010

American Gas - September 2010
Contents
President’s Message
We’ve Got Mail
Industry News
Safety First
To Be the Best
Reflections from AGA’s ‘Player-Coach’
2010 Buyer’s Guide
Marketplace
Advertisers’ Index
Places to Be
Noteworthies
Jobline
Facts on Gas

American Gas - October 2010