“Actually, in my budget, as you know, the budget I submitted, we -- was one that encouraged permanency. I believe it's essential that we have the tax cuts be permanent. It was implicit in my statement. I haven't changed. Appreciate your clarification. Congress needs to make the tax cuts permanent..” President Bush, White House Press Conference, 5/31/05 --------- “I have stated before you and other committees on occasion that I do think that there are parts of the existing recent tax changes, especially with respect to eliminating part of the double taxation of dividends, which I think enhances economic growth, enhances the tax base and therefore tax revenues, and that it is good economic policy." Alan Greenspan, Federal Reserve Chairman, 6/9/05 --------- “ America’s families need to be able to count on this tax relief to plan for their future. This tax relief encourages families to save and invest and gives businesses an incentive to pay more dividends that families can save in their retirement nest egg.” Congressman Eric Cantor, Chief Deputy Majority Whip (R-VA) --------- “Permanency of tax policy is best for the economy because it gives investors certainty,and you have to have certainty in order to have investment to create jobs.” Senator Charles Grassley, Finance Committee Chairman (R-Iowa) --------- "There is a lot of uncertainty out there for people planning
investments. Let's eliminate that to make people's tax planning and
retirement planning easier." Greg Phelps, John Hancock Financial Services, Inc, Bloomberg News
story, Jan. 31, 2005 --------- “ [The reduction in corporate dividend taxes in 2003 was] a very useful, major structural change in the budget.” Alan Greenspan, Federal Reserve Chairman --------- “ A permanent message to American businesses that making profit is a good thing, and sharing that profit with their shareholders is a better thing, has economic consequences.” Congressman Roy Blunt, House Majority Whip (R-Mo.) --------- “Dividend tax relief was exactly what this country needed to pull itself out of the recession. The positive effects of the Bush tax cuts are just beginning to be seen. If made permanent, their positive benefits could be even more substantial than currently predicted.” Bruce Bartlett, Senior Fellow, National Center for Policy Analysis --------- “ The uncertainty caused by this sunset threatens to introduce significant volatility into the financial markets because investors will become cautious about the long-term financial benefits of investing in dividend-paying stocks.” Congressman Pete Sessions (R-Texas) --------- “ We need to take the guessing out of savings and investment planning for families and businesses by allowing them to rely on the current reduced rates. It is not only unfair to reassign the burden of double taxation to American consumers and businesses, but it would stifle the economic growth we’ve enjoyed since these tax cuts were enacted.” Congressman Phil English (R-PA) --------- “ Congress must act soon to turn temporary success into permanent gain.” Marc E. Lackritz, President, Securities Industry Association --------- “ We’ve actually seen a huge increase in receipts in the area of capital gains as a result of reducing the rate.” Senator Judd Gregg, Budget Committee Chairman, (R-NH) --------- “ To keep investment growing and our economy strong, Congress should prevent a tax hike on dividends and put to rest speculation that the tax relief we enacted a few years ago will be undone. Such uncertainty is bad for the market and difficult for Americans who are playing a guessing game as they try to invest and save.” Congressman Paul Ryan (R-WI) --------- " [The 2003 tax cut on dividends and long-term capital gains] mitigated those distortions by reducing the extra tax burden*but only for a short interval. Because the lower rates expire at the end of 2008, investments made after that time will not benefit from them at all, and many investments made between 2003 and 2008 will benefit only partially. Hence, many of the gains in efficiency that could result from the effects of the lower rates on the allocation of investment will not be realized unless [the rates are] perceived to be permanent." The Congressional Budget Office --------- “ The 2003 tax cut, which reduced tax rates on capital to the lowest level in decades, continues to fuel economic activity as evidenced by the surge in business investment, profit growth, and dividends.” Brian S. Wesbury, Chief Investment Strategist, Claymore Advisors --------- “ If Republicans emerge from their House-Senate conference with a budget resolution that doesn't include an extention of the 15% rate in capital gains and dividends through 2010, look for further investor pessimism.” Wall Street Journal, April 21, 2005 --------- “ If you plan on holding an investment for at least four years (and in
most cases you should), there's a chance that your returns in the future
will be lower than you'd hoped.” The Motley Fool (fool.com), May 4, 2005 --------- | 
