morning. but i welcome the opportunity to give this house details of those decisions now. we decided on the following changes to support confidence and stability. firstly, the prime minister and i agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks ago that have not been legislated for in parliament. so we will continue with the abolition of the social care levy, changes to stamp duty, increase in the annual investment allows you £1 million and the wider reforms to investment taxes. but we will no longer be proceeding with the cuts to dividend tax rates saving around £1 billion a year. the reversal of the off payroll working reforms introduced in 2017 and 2021 saving around £2 billion a year. the new fat free shopping for saving a further £2 billion a year or the freeze on alcohol duty rates saving around £600 million a year. i will
the bill would permanently adjust the income exemption levels for the alternative minimum tax, the amt and would adjust it for inflation. that is a big deal because every year congress would have to come back and do what is called an amt patch. they won t have to do that now. also, capital gains. capital gains and dividend tax rates for high income households would increase to 20% from 15%. for everyone else investment tax rates would remain at 15% or below. then you have extending long-term unemployment benefits through 2013. the estate tax would be 40% of inheritance and $10 million per couple you, $5 million individual. it extends business tax credits and stammels tax credits, including wind farm credits. the business tax credits are the tax extenders and also does
pay them to individuals who are taxed at a high are rate. this does not solve a permanent role but a one time give to a shareholder at the end of the years pay less now opposed to more later and when we get to next year we are in an economy that is in a higher tax environment, companies will grow less well if that environment, association whatever cash they have, and they have available to pay out, will be taxed at a high are rate. neil: what do you make of the argument we had much higher dividend tax rates in the reagan administration, a good part of the clinton administration, and we did fine. guest: it was great to be a world monopoly. a wonderful thing to have the expire world recovering from world war ii but that is not where we are. higher taxes hurt economic growth. people say it doesn t hurt it and they are saying of all the possible answers i will pick the extreme one, which is zero. what is most iportant? millions are out of work, we have incomes that have not grown but the
you are hearing a lot of different messages. the democrats said president obama tran for reelection on a promise to bring the tax rates back to where they were during the clinton years. talk to us about that. if we were to reverse those numbers what would that mean and what would be an acceptable number as far as you are concerned? you have got to remember we are talking about different tax rates as well. for the viewers, there are income tax rates and dividend income tax rates. if the dividend tax rates are dramatically increased you will have significant problems with people entertaining and owning some of the bigger dividend paying stocks in the country. some of the big staples in the american economy would be at risk of people pulling their money away from that because they are getting a nice dividends. after tax it doesn t become so nice. if we dramatically increase tax rates and don t do a lot with
those of us going about our day-to-day schedules, our regular economy and then also how would that short-term agreement, should there be one, affect portfolios, investment portfolios and retirement accounts? i think going forward here that there will be some spending cuts. i think that loopholes that businessmen and folks have will be tweaked and there will be some increase in some of the tax rates. and for that, i think there won t be as egregious in nature the tax increases, tax rate increases that the democrats would like to put in place. arthel: what sort of rates are increases are you talking about? remember, there is different tax rates that come to expire here. we have dividend tax rates. we have income tax rates. these are so if you have a portfolio, for example, you re going to be a lot more cautious about investing maybe in dividend paying stocks because your dividend tax rate would go