Corporate Taxes and Economic Recovery—A Not-so-Delicate Balance
Author: Ilhan Meric.; Ira B. Sprotzer.; Gulser Meric.; Ilene V. Goldberg.
Source: Volume 30, Number 01, Fall 2012 , pp.51-61(11)
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Abstract:
The Jobs Growth Tax Relief Reconciliation Act of 2003 (JGTTRA) lowered the tax rate on dividends and capital gains to 15 percent. The tax cuts, originally set to expire at the end of 2008,were extended through 2012. Now Congress must again address the question of whether the tax cuts should be allowed to expire. The authors present research that indicates that increasing taxes on dividends and capital gains at this point in time will have a negative impact on the stock market and on economic growth.Keywords: dividend tax; capital gains tax; double taxation; Jobs Growth Tax Relief Reconciliation Act; JGTTRA; 2012 tax cut deadline
Affiliations:
1: Rider University; 2: Rider University; 3: Rowan University; 4: Rider University.