A married couple, both aged 65, with income of $40,000 (of which $2,000 is dividends and $15,000 is Social Security benefits) would see their taxes decline under the President’s growth package by $380 (from $930 to $550) in tax year 2003 –
a decline of 41 percent.
Today’s Action
Treasury Secretary John Snow met with the Financial Services Association leaders 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 dividends, would have far-reaching effects – increased stock prices, improved investment and faster economic growth – that would generate broad benefits throughout the economy and help Americans of all income levels.
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
Dividends are frequently considered a good way to judge if a corporation is healthy. If a company pays regular dividends, investors will have checks in their hands and can be confident that profits are real. The President’s proposal will encourage more companies to pay those dividends.
The President’s plan would eliminate the double taxation of dividends for millions of stockholders – allowing taxpayers to exclude dividend payments from their taxable income and returning about $20 billion this year to the economy.