February 25, 2003

Jobs & Economic Growth Fact of the Day

$20,000,000,000

By eliminating the double taxation of dividends for millions of stockholders, the President’s plan would provide $20 billion in tax relief to Americans this tax year alone – resulting in higher levels of economic output and job creation starting this year.

Today’s Action

• Treasury Secretary John Snow met with the Credit Union National Association’s Government Affairs Conference and the Financial Services Forum in Washington, DC today to discuss the President’s jobs and economic growth plan. The President’s plan, especially the provision to eliminate the double taxation of corporate income such as dividends, will accelerate economic growth and benefit every American.

• Ending the double taxation of dividends would strengthen the economy by creating:
  • More jobs
  • Higher wages
  • Tax relief for investors--especially seniors
  • A positive impact on the stock market
  • Improved corporate governance

• Last week, the Joint Economic Committee of Congress released a report showing that the elimination of the double taxation of dividends will benefit all Americans – not just taxpayers who currently receive dividends. Based on the principle that paying a tax is not the same as bearing the economic burden of a tax, the JEC confirms that the dividend provision will help anyone who benefits from faster economic growth and higher stock prices.

• The dividend provision will have far-reaching effects – increased stock prices, improved investment and faster economic growth – that will generate broad benefits throughout the economy and help Americans of all income levels.

• Federal Reserve Chairman Alan Greenspan expressed his support for the dividend proposal in his Congressional testimony earlier this month. "In my judgment, the elimination of the double-taxation of dividends will be helpful to everybody," he said. He added that, "This particular program will be net of benefit to virtually everybody in the economy over the long run, and that is one of the reasons I strongly support it." (Reuters, 2/12/03)

• Since his swearing-in less than three weeks ago, Secretary Snow has traveled to New York, New York; Detroit, Michigan; and Philadelphia, Pennsylvania to meet with taxpayer families, employees and small business owners to discuss the President’s jobs and economic growth plan.