Bill extends benefits of Capital Gains/ Dividends tax cuts for additional two years

Washington, DC- Today on the South Lawn of the White House, President Bush signed into the law a $70 billion tax cut, which creates a two-year extension of the Capital Gains and Dividends tax cut. The 15% tax rate for capital gains and dividends will now expire in 2010 instead of 2008. The President continued his strong pro-growth tax policies by also extending Alternative Minimum Tax changes that will protect higher middle-income families from becoming trapped in a tax designed for the wealthy.

Since the President’s first term tax cuts have been enacted over 5.2 million jobs have been created and the government’s coffers have seen a 15% increase over the last year while an unexpected additional $2,000 of GDP per household was created since 2003.

“The President has shown strong leadership by signing an extension of these pro-growth policies,” said Grover Norquist, president of Americans for Tax Reform. “However, additional steps must be taken to guarantee a growing economy for generations. President Bush must stand firm on spending discipline and veto any and all attempts to include pork within the budget. Vetoing a pork-laden emergency supplemental is only the beginning.”