A few facts about why tax reform is a good idea this year.
In 2006, the small business expensing limit for making investments in their businesses will shrink from $100,000 to $25,000. We need small business capital spending to raise productivity. Small business makes up more than half of GDP.
In 2009, the top tax rate on dividends will increase from 15 to 35 percent, while the tax on capital gains will climb from 15 to 20 percent. the stock market has increased in value by more than $3 trillion since the dividend tax cut was passed.
In 2011, tax rate relief, the new 10-percent tax bracket, death tax repeal, and the marriage penalty relief are all scheduled to go away. Tax rates will rise for everyone.
JR
It is nice to see some actual statistics on this issue. I would note that with all the strong home and vehicle sales, these sales wouldn’t be occuring if the folks incomes were not rising.