The Alliance for Tax Fairness and Growth (TATFG) was established as a coalition in March 2005 by a group of concerned parties supportive of the 15% maximum tax rate on dividends and capital gains. Prior to the law’s passage in May 2003, the maximum tax rate on dividend income was 38.6%, and long-term capital gains were subject to a top tax rate of 20%.

Since the tax cut two years ago, corporate dividend payments have steadily increased, and more firms have initiated dividends for the first time. In the year following enactment of the lower rate, 113 publicly traded companies began paying dividends for the first time compared to an average of 22 companies in prior years.

The mission of The Alliance for Tax Fairness and Growth is to convince the U.S. Congress to extend this year these lower rates, which have helped strengthen and stabilize the markets while also boosting individual savings. In a recent survey of investors, 80% said they want Congress to act this year to make the dividend tax cut permanent!

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