Capital Gains Tax Reform Benefits Seniors, Pennsylvanians
Additionally, IRS data indicates that almost one-third of Pennsylvanians reported capital gains and dividend income in 2000. The average savings from the lower capital gains tax was $544 per person in 2003.
The Wall Street Journal notes that the reduction in investment taxes has been crucial to economic growth – business investment is up, the stock market and GDP are on the rise, and “tax receipts rose by more than in any previous year in U.S. history, even adjusting for inflation.” Additionally the lower rates have led to an increased number of individual investors and more companies are paying dividends to their stockholders.
As the percentage of families and individuals looking to invest continues to rise and as the “Baby Boom” generation begins to reach retirement age, taxes on investment income will become increasingly debilitating. Keeping the capital gains rate at 15% produces tax savings for a majority of seniors and almost 2 million Pennsylvanians, and is crucial for economic growth.