House Passes Tax Rate Extension Act

August 2, 2012

The U.S. House of Representatives passed H.R. 8, the “Job Protection and Recession Prevention Act,” that would extend the 2001 and 2003 tax rates through 2013.

H.R. 8 includes an extension of current marginal tax rates, as well as dividend and capital gains tax rates. It also extends current estate tax rates and exemption levels through 2013 and provides for an alternative minimum tax (AMT) patch, also through 2013. Without a legislative solution, all of the 2001 and 2003 tax cuts will expire at midnight on New Year’s Eve.

Independent insurance agents support the tax rate extension bill because any tax increases resulting from a repeal would also hit many agencies across the country.

“Without this extension American taxpayers will endure the largest tax hike in the country’s history at a time when economic growth and job creation are stagnant,” said Robert Rusbuldt, president & CEO of the Independent Insurance Agents & Brokers of America (Big “I”). “Small businesses, like many independent insurance agencies and those that line Main Streets across America, will also be hit with this tax increase, stifling any chance of a recovery.”

“This extension of current rates would help remove the uncertainty looming over the tax code, bolster our economy and allow small businesses to plan, hire and grow,” says Charles E. Symington, Big “I” senior vice president of government affairs. “We call on the Senate to pass a similar extension before the end of the year in order to provide the certainty needed in the tax code to spur an economic recovery.”

Source: Big I

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