Now this looks promising as a step in the right direction. The AP is reporting that 47 House Democrats are breaking rank and urging Congress to extend tax cuts on investments. This means keeping the current rates on capital gains and dividends. A letter purportedly sent to House Speaker Pelosi states the following:
“Raising taxes on capital gains and dividends could discourage individuals and businesses from saving and investing,” said the letter, dated Friday and released Tuesday. “We urge you to maintain the current tax rate for both dividend and long-term capital gains taxes.”
These rates are supposed to revert to their old rate of 20% at the end of the year. If this tax cut measure is extended, it is possible that the tax rate for highest income earners could be extended as well. Both would do a wealth of good for economic recovery.