For Immediate Release

May 10, 2006

 

Contact:

 

 

Travis Larson

(202) 216-2057

tlarson@sia.com

Melissa Buden

(212) 618-0502

mbuden@sia.com

 

 

SIA Praises Senate For Extending Capital Gains And Dividends Tax Rates

 

 

 

WASHINGTON, D.C., May 11, 2006The Securities Industry Association (SIA) commended the Senate today for passing legislation to extend the current tax rates on long-term capital gains and dividends.  Originally set to expire at the end of 2008, today’s action by the Senate extends the 15 percent maximum tax rate on capital gains and dividends until 2010.

 

The lower tax rates, first passed in 2003, have played a vital role in fueling the growth of a strong and vibrant economy.  The U.S. economy has created over 5 million jobs and boosted GDP by an average of nearly 4 percent annually, since their passage.

 

“The lower tax rates on capital gains and dividends have already yielded tremendous economic results, which is why it was imperative that they be extended through 2010,” said Marc Lackritz, president of SIA.  “This extension provides investors and businesses more certainty and ensures that the economy’s growth remains on track.”

 

This extension is the crown jewel of the tax reforms enacted during the Bush Administration.  It has produced over 5 million new jobs and record economic growth,” added Richard Hunt, senior vice president, federal policy.  “This legislation is critical for Americans preparing to retire.  With 78 million Baby boomers about to enter retirement, this provision helps ensure that they will be financially prepared.”

 

 

                                                                                                                                                       

 

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The Securities Industry Association brings together the shared interests of more than 600 securities firms to accomplish common goals.  SIA's primary mission is to build and maintain public trust and confidence in the securities markets.  SIA members (including investment banks, broker-dealers, and mutual fund companies) are active in all U.S. and foreign markets and in all phases of corporate and public finance.  According to the Bureau of Labor Statistics, the U.S. securities industry employs nearly 800,000 individuals, and its personnel manage the accounts of nearly 93-million investors directly and indirectly through corporate, thrift, and pension plans.  In 2005, the industry generated an estimated $322.4 billion in domestic revenue and an estimated $474 billion in global revenues.  (More information about SIA is available at: www.sia.com.)