Free Republic

Dividend Voodoo By Warren Buffett Tuesday, May 20, 2003; Page A19 The annual Forbes 400 lists prove that -- with occasional blips -- the rich do indeed get richer. Nonetheless, the Senate voted last week to supply major aid to the rich in their pursuit of even greater wealth. The Senate decided that the dividends an individual receives should be 50 percent free of tax in 2003, 100 percent tax-free in 2004 through 2006 and then again fully taxable in 2007. The mental flexibility the Senate demonstrated in crafting these zigzags is breathtaking. What it has put in motion, though,...

Senate Finance Committee Chairman Chuck Grassely's said Wednesday that President Bush's bid to eliminate the double taxation of dividends "may be out the window" unless the Senate reversed a $350 million tax cut limit. The senator said his panel "can make very good income tax policy" within the $350 billion limit, but said it seems "practically impossible to do anything" on dividends. The Senate is poised to complete work on its budget resolution by Wednesday afternoon. Republicans hope to pass amendments that would restore the $726 billion in tax cuts sought by the White House.

WASHINGTON (Dow Jones)--Treasury Secretary John Snow on Tuesday vowed a "full-court press" for President George W. Bush's new tax cut plan. He also predicted U.S. shareholders will become strong allies for the $695 billion tax cut once they understand its benefits. "We build a bigger and bigger base of support for this proposal as it gets understood and shareholders learn what it means for them," Snow told reporters in his first press conference as Treasury secretary. Snow said the U.S. needs fiscal restraint to control deficits, but said he believes the forecast deficits are manageable in the context of the...