USTelecom actively advocates for reduced corporate and dividend tax rates on our member companies and works with partner organizations to implement positive tax reform.
Congress’s current focus on deficit reduction is closely related to the prospects for tax-policy reform. Recommendations made by the Joint Select Committee on Deficit Reduction (also known as the "super committee") could significantly affect the telecom industry.
Deficit reduction recommendations currently have center stage, but in the context of long-term fiscal policy, tax reform will play an essential role.
In the meantime, the favorable tax rates for individuals set in the 2003 Bush tax cut will expire in 2013. If the rates revert to pre-Bush figures, the resulting disparity in tax rates could discourage investment in high dividend-paying industries like telecom while favoring "growth stocks" that benefit from lower capital gains taxes.
President Obama’s 2012 budget addresses these issues by establishing a 15 percent tax rate on both dividend and capital gains taxes for individuals who make less than $250,000, and a 20 percent rate for taxpayers who earn more.
Tax policy is historically an important issue to our member companies, and USTelecom is very active in our advocacy for lower corporate tax rates.
Some examples of our efforts include:
- Joining with 155 other associations on a letter urging the "super committee" to address comprehensive tax reform.
- Working with the Alliance for Savings and Investment to educate Congress and the Administration about how lower dividend tax rates encourage investment by companies like those in the telecom industry.
A corporate tax rate overhaul could end preferential treatment for some and reduce taxes for others.