By Silla Brush - 07/29/10 03:53 PM EDT
A group of some of the country’s largest financial, technology and manufacturing interests warned President Obama on Wednesday that higher taxes on capital gains and dividends would cost thousands of jobs, “stifling the recovery.”
The Alliance for Savings and Investment praised the administration for seeking to keep the tax rates low instead of allowing them to revert to much higher rates by next year. If Congress does not act, capital gains rates would rise from 15 percent to 20 percent for most filers, and dividends rates would be taxed at the marginal income rate, or as high as 39.6 percent.
The alliance — including the U.S. Chamber of Commerce, Verizon, Altria, UPS and others — wants to cap the tax rates at 15 percent for dividends and capital gains.
“An extension of these rates would provide much needed certainty to businesses, families and retirees who now face the threat of a looming tax increase during this time of continued economic and market uncertainty,” the group wrote in a letter to the president.