Posted on 01/07/2003 11:04:15 AM PST by B-bone
Bush Unveils $674 Billion Economic Plan
CHICAGO (Reuters) - President Bush (news - web sites) on Tuesday proposed a $674 billion boost for a struggling U.S. economy with measures including an end to taxes that shareholders pay on dividends -- a move denounced by Democrats as a politically motivated windfall for the rich.
"I will ask members of both parties to work with me to secure our economic future. We cannot be satisfied until every part of our economy is healthy and vigorous," Bush said in a speech to the Economic Club of Chicago.
The "growth and jobs" package aims to kick-start the U.S. economy by encouraging consumer spending, promoting investment that will create jobs and helping the unemployed.
It will include the acceleration of across-the-board rate cuts, immediate tax relief for married couples and families with children, and bigger incentives for small businesses to invest in new equipment.
In all the White House says it will give 92 million taxpayers an average tax cut of $1,083 this year. Up to 35 million people who get income from dividends could benefit.
It depends on the meaning of the word "is."
Well, that's true but since the tax is paid when it is withdrawn one's rate of return is considerably less. Having those dividends be tax free when they are withdrawn increases the attractiveness of 401(k)s and IRAs. That means people will be better able to provide for their retirement, which was one of the objectives stated in W's speech.
Also, if anyone has to withdraw early, the earnings are taxed and there is a heafty penalty to boot!
Don't know about Ronnie and W, but 43 is a distant relative of Winston Churchill (also of the late Princess Diana).
Yeh. NOW the democrats seem to think THEIR $300 muffler is a good thing. LOL
What a joke. No wonder they call it a tax "credit" rather than a tax break!
He now has the trust of the American people and a Republican Congress, and can afford to go for the jugular on some things, while being patient and incremental on others.
Does anyone still think this man is stupid??
ROTF. Dasholes "muffler!" LOL.
When something as plain and simple as Common Sense can righteously slap Congress upside the head, it certainly points out in stark relief how far we have fallen from what our forefathers struggled so valiantly to obtain for us!
Remember, with a 401(k) plan, you put in money, not stock, and you withdraw money, not stock.
With 60% of stock being held by institutions (mostly for 401(k) and other retirement plans, or for Liberal nonprofit foundations), we have to assume for the sake of argument that we have 60% of stock dividends already subject to no taxation anyway.
What is happening is the 40% of dividends not already taxed will no longer be subject to taxes.
It seems to me that the value of a 401(k) as an investment opportunity has just been substantially depreciated unless you are also getting a substantial sum in employer matching contributions.
Equity would demand that we be able to withdraw our 401(k) funds tax free to the extent such funds derive from our own direct investments and not from employer matching contributions.
Wait and see what happens with those things he gave up to get the BIG fish, now that he has a Congress that will support him.
It wouldn't matter to me if the Feds only paid .5%....the underline concept is still valid: families with children use far more public resources than single, childless people. Why then, do the families get the tax break?
I should get the tax break: I don't have a kid in school.
Only if you're willing to change the definition of words.
Besides, her lie is more sinister than that. The implication is that making dividends tax-free won't have any impact on people with those retirement accounts.
It sure the heck will. There are taxable and non-taxable withdrawals from those accounts, and this would shift dividend payments into the non-taxable category. The impact of that for many retirees will be huge.
What?
I doubt that couples who make $39,000/yr are into investing...
actually $20/week extra equals an extra pizza/week.
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