By Jay Heflin - 09/16/10 01:26 PM EDT
Come January, capital gains taxes will jump to 20 percent while the tax on dividends will skyrocket to rates as high at 39.6 percent. These increases do not include the rate adjustment that is a part of the new healthcare law.
Several business leaders are concerned that a rate increase on investments at a time when the economy is struggling to recover will only make matters worse.
"Keeping tax rates for capital gains and dividend income low and equal for all Americans is common-sense tax policy that will encourage job creation, strengthen our economic recovery and protect seniors and other taxpayers from rising tax bills," Breaux said in prepared remarks. "This is an issue that transcends partisanship because it is critical to our economic success."
Breaux joins former Ways and Means Committee ranking member Jim McCrery (R-La.) in calling on Congress to extend current investment tax rates.
Lawmakers on both sides of the aisle have expressed concern that a tax increase on dividends could hurt seniors who depend on dividend checks to help make ends meet.
Breaux and McCrery argue that a tax increase on dividends might discourage corporations from making these payments.