The average tax relief for the more than 9 million seniors who include dividend income on their tax return in 2003 would be $991 as a result
of the provision to eliminate the double taxation of dividends
in the President's jobs and growth plan.
Secretary of the Treasury John Snow delivered remarks to the U.S. Chamber of Commerce Board of Directors meeting today. The Secretary stressed the importance of the Presidents jobs and economic growth plan, especially the provision to eliminate the double taxation of corporate income such as dividends, and its significant, immediate impact on the American economy.
The double taxation of dividends hits the Nations seniors the hardest. More than half of seniors who will file tax returns in 2003 have taxable dividend income. In fact, seniors receive over half of all taxable dividends.
The elimination of the double taxation of dividends is the key job creation provision of the Presidents plan. The CEA calculates that the dividend provision produces 31 percent of the new jobs by 2004 431,000 out of the total 1.4 million jobs created by the Presidents plan.
Ending the double taxation of dividends would strengthen the economy by creating:
Tax relief for investors--especially seniors
A positive impact on the stock market
Improved corporate governance
This week, Secretary Snow has delivered several speeches about the Presidents growth plan, as well as met with numerous Congressional leaders to discuss the job-creating package.