Government Relations

NAWC Joins Alliance for Savings and Investment (ASI)
Water Companies Seek Extension of Today’s Capital Gains and Dividend Tax Rates

The National Association of Water Companies will join leading companies and business groups to advocate for the extension of the current rates on capital gains and dividends.

“Water companies must continue to be able to attract capital to fund the EPA estimated $300 billion in public and environmental health infrastructure needs over the coming years,” said Michael Deane, NAWC executive director.

Even during tough economic times, and over the past year, public water providers and NAWC members have invested nearly $2 billion in the nation’s water infrastructure. This investment rate is nearly equal to the amount that the Federal Government spent on water infrastructure in the American Recovery and Reinvestment Act (ARRA).

The coalition’s website houses seminal research papers, latest news, facts about the issue, and an action center for citizens looking to voice their opposition to a tax hike on investment income.

“Now that the health care and financial regulatory reform bills are inked, the business community is quickly reorienting itself to address another major issue: the possibility of dramatic tax increases on capital gains and dividend income,” said Jim McCrery, ASI spokesman and former ranking member of the House Ways and Means Committee. “ASI’s members realize that if Congress doesn’t act this year, a rise in these tax rates could significantly deter capital investment at the worst possible time, threatening our fragile economic recovery and forcing companies to make capital allocation decisions that will negatively impact their investors.”

Absent congressional action, current capital gains and dividend tax rates will automatically increase for all taxpayers on January 1, 2011. The effects of such a tax increase are numerous: deter investment and derail America’s fragile economic recovery; discourage businesses from paying dividends, hurting Americans at all income levels, especially seniors, many of whom rely on investment income as a supplement to their retirement; and incentivize companies to use debt financing as opposed to equity financing, ignoring a key lesson learned from the financial crisis.
Extending today’s rates would provide much-needed stability to retirees, families, small businesses and infrastructure providers who now face the threat of a looming tax increase during turbulent economic times.

About ASI: ASI is a diverse group of dividend-paying companies, investor organizations, and trade associations committed to strengthening the economy through policies that foster private savings and capital investment. ASI members include Altria, American Gas Association (AGA), AT&T, Business Roundtable, Capital Research and Management Company, Edison Electric Institute (EEI), Financial Services Forum, Investment Company Institute (ICI), Mass Mutual, National Association of Manufacturers, National Association of Water Companies, Securities Industry and Financial Markets Association (SIFMA) UPS, U.S. Chamber of Commerce, USTelecom, and Verizon.

NAWC Engages on EPA's New Approach to Protecting Drinking Water and Public Health

NAWC is working with AWWA’s New Jersey Section and the Water Utility Council ad-hoc work group to assess the potential impact of EPA's New Approach to Protecting Drinking Water and Public Health and to provide comments and advice to EPA.

Keith W. Cartnick, senior director of water quality and compliance for United Water, is chairing the NJAWWA/WUC workgroup and will coordinate with NAWC’s efforts.

U.S. Environmental Protection Agency Administrator Lisa Jackson has outlined four principles to provide greater protection of drinking water, one of which is to address contaminants as groups.

As part of EPA’s outreach, on July 28–29, EPA will hold a web dialogue focused on addressing contaminants as a group. EPA welcomes input on approaches it should consider when developing a framework to group contaminants and invites everyone interested in safe drinking water to participate. This dialogue will provide an opportunity for participants to exchange information and share ideas. EPA will consider the feedback from this web dialogue and information from this exchange as they develop the agenda for the upcoming Drinking Water Strategy stakeholder meeting and the framework for addressing contaminants as groups.

Click here to register for the July 28-29 web dialogue.

Click here for more information on the four principles of the Drinking Water Strategy.