I pretty much hate all politicians. They are scum, and politics only attracts power thursty sons of bitches. With that said, Bush at least is here to help us small business owners:
1. End the double taxation of dividends
Roughly 35 million American households receive dividend income that is taxable and will directly benefit under the President's plan. More than half of these dividends go to America's seniors, many of whom relyon these checks for a steady source of income in their retirement.
Yet seniors and other investors are not getting the full benefit of their investments because those investments are taxed twice. The IRS taxes a company on its profits, then it taxes the investors who receive the profits as dividends. The result is that for every dollar of profit a company could pay out in dividends, as little as 40 cents can actually reach shareholders.
In practice, double taxation of dividends means that even an investor of modest means is paying a higher tax rate on dividends than wealthy taxpayers pay on their income.
It is fair to tax a company's profits, and under the President's plan, company profits will still be taxed -- but only once. It is not fair to tax this income twice by taxing the shareholder on those same profits. Double taxation is wrong - and it falls hardest on seniors.
Almost half of all savings from the dividend exclusion under the President's plan would go to taxpayers 65 and older. The average tax savings for the 9.8 million seniors receiving dividends would be $936.
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.
2. The President's plan would:
Make all the tax rate reductions from the 2001 tax law effective this year - and retroactive to January 1, 2003.
Upon passage, the President will order the Treasury Department to immediately adjust the amount of money withheld for income taxes, so that Americans will keep more of their paychecks right away.
For income earned after January 1, 2003, the following tax rates would be in effect:
10%
15%
25%
28%
33%
35%
3. Increase incentives for small businesses to grow
Small businesses create the majority of new jobs and account for half the output of the economy.
Current tax laws permit them to write off as expenses up to $25,000 worth of equipment purchases. The President's plan would increase that limit to $75,000 and index it to inflation - encouraging them to buy technology, machinery, and other equipment they need to expand.
Full story here:
http://www.whitehouse.gov/news/relea.../20030107.html
