Tax increase will hurt students, businesses

As the school year begins, thousands of Florida students will enter their final year of college. While the prospect of finding a first job out of college was once an exciting time for many students, it has now become a very unsettling topic for those entering the workforce.

As we continue to be in the middle of a historically rough economic period, we need lawmakers to support smart economic policies that will contribute to sustained job growth for today's graduating students.

Unless Congress acts by Dec. 31, the 2003 federal bill that established a 15 percent tax rate for dividends and capital gains will expire. If Congress fails to write new legislation to do this, automatic tax increases will begin in January. These tax increases will cause the dividends tax rate to increase by as much as 164 percent and the maximum capital gains tax rate to increase by as much as 33 percent.

Keeping the current capital gains and dividend tax rates would give employers economic stability to create jobs for our graduates.

Additionally, if these tax increases take effect, they will severely hurt small businesses in our state. According to the Agency for Workforce Innovation, more than 90 percent of the state's businesses have less than 20 employees. It is clear the small business community is not only an important part of our economy but a major contributor to hiring countless college graduates.

Reports by The Heritage Foundation also suggest the higher taxes on dividends and capital gains could result in 270,000 fewer jobs in the United States in 2011. These figures will only increase every year as business is forced cut additional jobs at the expense of these taxes.

Representing 28 private, not-for-profit universities in Florida, I hope U.S. Sens. Bill Nelson and George LeMieux, along with Florida's entire congressional delegation, will support maintaining the 15 percent maximum tax rate on dividends and capital gains.

After working hard and spending important resources to obtain a college degree, students deserve public officials who will fight for policies that will contribute toward job growth. The last thing we need is companies cutting back on hiring and investment when many unemployed Floridians, not to mention many graduating students, are looking for work.