For Immediate Release
May 10, 2006
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Contact: |
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Travis Larson |
(202) 216-2057 |
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Melissa Buden |
(212) 618-0502 |
SIA Praises Senate For Extending Capital Gains And Dividends Tax Rates
WASHINGTON,
D.C., May 11, 2006 – The
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.)