Jon Kyl: “I want to take some time to discuss the importance of preventing tax increases that are scheduled to occur over the next…”

“I want to take some time to discuss the importance of preventing tax increases that are scheduled to occur over the next several years. The budget resolution conference agreement reached in April provides reconciliation protection for $70 billion of tax reductions over 5 years, with the direction that the allocation be used to prevent tax increases during the budget window. This sent a signal to investors that capital gains and dividends tax rates would be extended through 2010. I am disappointed that the legislation approved by the Senate does not meet that expectation. Fortunately, the bill approved by the Ways and Means Committee in the other body does, and I pledge to all investors that I will continue to work for that outcome. Indeed, the Senate majority leader pledged that he would not bring the bill back from conference without an extension of these investment tax rates. Similarly, the administration released its Statement of Administration Policy on the bill, which urged Congress to extend the lower rates for capital gains and dividends, noting, ``These extensions are necessary to provide certainty for investors and businesses and are essential to sustaining long-term economic growth.'' The tax reconciliation bill is intended to prevent tax increases by extending ``widely applicable'' tax provisions.…”