47 House Democrats Want To Extend Investment Tax Cuts

Posted By on September 28, 2010

September 28,2010

Stephen Ohlemacher

Associated Press     

WASHINGTON – A group of 47 House Democrats are telling party leaders they want to continue Bush-era tax cuts on investment income, breaking ranks with President Barack Obama and exposing divisions among Democrats over their party’s pre-election message about taxes.

The lawmakers, led by Rep. John Adler, D-N.J., have sent a letter to House Speaker Nancy Pelosi saying they strongly support extending the current tax rates on capital gains and dividends.

“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.”

Tax cuts enacted in 2003 set the top tax rate on capital gains and dividends at 15 percent. Those tax cuts expire at the end of the year, and Obama wants to let the top tax rate on capital gains and dividends increase to 20 percent for individuals making more than $200,000 and married couples making more than $250,000.

Democratic leaders in Congress had been pushing for a vote to extend middle-class tax cuts before lawmakers go home to campaign for the Nov. 2 congressional election. But action on the tax cuts was postponed until after the election when Democrats could not agree on how to proceed.

With no vote on the tax cuts scheduled before the election, Democrats are left writing letters to their leaders to publicize their positions.

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