Legacy Management Consulting Group LLC Bulletin: Democrats May Push Back on Investment Income TaxCut

Oct. 4, 2010 - PRLog -- " House Democrats may help push back and overrule President Obama on investment income tax breaks." stated Dominick Sartorio, Director of New Business at Legacy Management Consulting Group LLC. As reported by the Associated Press, forty-seven House Democrats, which would be enough to give Republicans a victory on taxes if the issue comes to a vote, are breaking ranks with President Obama by calling on party leaders to continue Bush-era tax cuts on investment income. Lawmakers have sent a letter to House Speaker Nancy Pelosi in strong support of the extension of 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. "We urge you to maintain the current tax rate for both dividend and long-term capital gains taxes."

The Bush-era tax breaks have been a hot button for President Obama, who wants to increase the capital gains tax rate while simultaneously supporting further tax breaks for the middle-class and for small businesses.

"With the current state of the economy and upcoming elections, an increasing number of Democrats are becoming weary of supporting a tax hike." stated Anthony Urbano, Principal at Legacy.

Tax cuts enacted in 2003 had set the highest tax rate on capital gains and dividends at 15 percent. Those tax cuts will expire at the end of the year, and President Obama wants to let the highest 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. These tax cuts on investments were part of a sweeping package enacted under President George W. Bush that lowered income taxes for families at every income level. These tax cuts are set to expire at the end of the year.





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U.S. Treasury Circular 230 Notice:  Any U.S. federal tax advice included in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties.

The information contained herein was prepared by Legacy Management Consulting Group, LLC from public documents for general informational purposes.  Its contents should not be construed as professional advice, and readers should not act upon the information contained herein without consulting a professional.  This information is presented without any representation or warranty as to its accuracy, completeness or timeliness.  Transmission or receipt of this information does not create any relationship with Legacy Management Consulting Group, LLC.  Electronic mail or other communications with Legacy Management Consulting Group, LLC cannot be guaranteed to be confidential and will not imply nor create any relationship with Legacy Management Consulting Group, LLC.

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