We know you have been working with Congress to prevent our nation from going over the fiscal cliff. The members of the National Black Chamber of Commerce are heartened to see progress being made, and we hope a workable resolution for the business community can be achieved by the end of this year.
Of particular importance to the Black business community is keeping investment dollars affordable. We have made great strides in many communities by building our business from the ground up and seek to do even more. However, we are concerned about the cost of capital.
Media reports of your ongoing negotiations with Capitol Hill leaders indicate that the rates on capital gains could go as high as 23.8 percent and dividends even higher at 43.4 percent. The impact of those increases could have a negative impact on the investments and related job creation we are making in urban communities.
Furthermore, having differing rates for different types of investment will skew how we and others in the business community allocate our dollars. We should not have federal tax policy that distorts one investment vehicle over another.
We strongly encourage you and members of Congress to take action this year and maintain parity between capital gains and dividends for a balanced investment environment.
National Black Chamber of Commerce