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 Home > News & Policies > March 2003

For Immediate Release
March 7, 2003

Jobs and Economic Growth Fact of the Day


26 million American taxpayers would receive an average tax cut of $704 in 2003 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, Secretary of Commerce Don Evans, and Secretary of Housing and Urban Development Mel Martinez were all on Capitol Hill today to discuss the President's jobs and economic growth plan with Members of Congress. All three called on Congress to act on the President's plan, and stressed the significant, immediate impact it would have on the American economy.

  • The President's plan, especially the provision to eliminate the double taxation of dividends, would accelerate economic growth and benefit every American.

  • Over a quarter of all income tax returns report dividend income and over 40 percent of all these returns have incomes of less than $50,000 per year. Currently, if a family owns 200 shares of a $50 stock with a 3% yield, they receive $300 in dividends from those shares each year-but they may be able to keep less than $185 of that because the current tax law unfairly taxes dividend income twice. Eliminating the double taxation of dividends would allow such families to keep another $115 of their earnings to spend as they see fit.

  • The double taxation of corporate income such as dividends is counter-productive and damaging to the economy. Double taxation prevents companies from hiring new workers, hardworking taxpayers from saving for their retirement, and small businesses from growing.

  • 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