Daily Tax Update - March 14, 2006

Today, Treasury Secretary John Snow hosted a symposium entitled, "Investing in America’s Future – Preserving the Lower Tax Rates on Capital Gains and Dividends". Several economic advisors and economists appeared at the symposium. Snow said, "President Bush recognized that something needed to be done; a more favorable climate was needed to encourage capital investment and spur job growth. With the enactment of the Jobs and Growth Act of 2003, the U.S. economy made a remarkable turn-around. From capital investment suffering nine consecutive months of decline, businesses took advantage of the much-needed incentives and almost overnight began investing more.  And since that time, almost five million new jobs have been created. Today we have brought together a remarkable group of experts that work both in and out of the Administration to discuss how sound tax policy leads to a strong economy.  It is our intent that the discussions here today will encourage members of Congress to move forward in making the President's tax relief permanent."

  • The Treasury Department also released a report in conjunction with today’s symposium titled "The Economic Effects of Cutting Dividend and Capital Gains Taxes in 2003."
  • The document can be accessed here.  
  • A recent White Paper published in Tax Notes by Mihir A. Desai, an economist at Harvard Business School, offers suggestions for reforming the taxation of corporate capital gains, which can be accessed here.  


  • S. 2401 sponsored by Sen. Charles Grassley (R-IA) would extend certain energy tax incentives.

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