Wednesday, May 07, 2003

Senate GOP Reaches Dividend Tax Deal

This just in from the AP.

The Senate's Republican tax writers struck on agreement Wednesday on a dividend tax cut, ensuring that a scaled-back version of President Bush's call to eliminate such taxes entirely for shareholders will win support in the Senate Finance Committee.

The proposal combines elements favored by GOP moderates and conservatives. Shareholders would not pay taxes on the first $500 of dividend income. Committee Chairman Charles Grassley, R-Iowa said that covers the 86 percent of taxpayers who receive dividend income. . .

. . .The redrafted dividend tax cut won support from Sen. Olympia Snowe, R-Maine, who had forced Republicans to bargain for a smaller dividend tax cut. It is still opposed by Democrats on the panel.
A Republican who doesn't wholeheartedly support a tax cut is like a fish that doesn't wholeheartedly support water. Sure, this tax cut favors 86% of taxpayers who receive dividend income, but frankly, it's that other 14% who really drive the US economy. I wonder when those in Washington are going to catch wind of that minor fact.

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