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
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: