How We Got Here

In 2003, Congress passed an important law - the Jobs and Growth Tax Reconciliation Act of 2003 - that temporarily and dramatically reduced the maximum tax rate on dividend income from almost 40 percent to 15 percent. Extended in 2006, lower dividend tax rates are now scheduled to expire on December 31, 2010. One of the original goals of the 2003 law was to jump-start the economy and generate investment in the stock of American companies.

As the nation tries to recover from one of the worst economic periods since the Great Depression, now is not the time to raise taxes and discourage investment. Instead, Congress should stop a dividend tax hike to encourage long-term investment in our nation's economy and future.