Letter - Seniors Benefit most from Bush Tax Plan

To the editor:

America's seniors will benefit most from the centerpiece of President Bush's economic stimulus plan, according to the Council for Government Reform (CGR).

The centerpiece of the Bush economic plan is the elimination of the double taxation of dividends. In America today, almost half of the income earned through dividends is received by those over 65. Ending the unfair taxation of dividends saves the roughly 9.8 million seniors who rely on dividends an average of almost $1,000 this year alone.

Today's seniors are struggling to make ends meet. They are not getting the full benefit of their investments because those investments are being taxed twice.

Under today's tax code, the IRS taxes a company on its profits, then taxes the investors who receive the profits as dividends. The result is that for every dollar of profit a company pays as a dividend, as little as 40 cents can actually reach shareholders.

Ending the unfair double taxation of dividends is a positive step toward making the retirement of all Americans secure. It encourages companies to issue dividends and individuals to reinvest those dividends to save for retirement. Not only will it add billions to the struggling American economy, but it will increase the value of the millions of 401(k)s and IRAs held by seniors and hard-working Americans alike," concluded Hardin.

The Council for Government Reform and its more than 1 million supporters are concerned about retirement security in America. We seek retirement security policies that encourage economic growth, wealth creation, and individual choice and control. For more information visit www.govreform.org. If at any time you want to stop receiving these press releases, please click the following link and your name will be taken off our list of e-mail contacts, mailto:info@seniorexchange.com.

Michelle Plasari

Council for Government Reform

Arlington, Va.