Chris Chocola: “President Bush said in his State of the Union address, ``The best and fairest way to make sure that Americans have more…”

“President Bush said in his State of the Union address, ``The best and fairest way to make sure that Americans have more money is not to tax it away in the first place.'' Fundamental tax reform will allow all Americans to keep more of their own money instead of sending it to Washington, and abolishing the double tax on dividends is an important first step. Under current tax law, income earned by corporations is taxed twice, both at the corporate level and the individual level. Ending the doubling taxation of dividends would benefit millions of Americans who invest in successful companies, either directly or through retirement accounts like IRAs. Eliminating this extra tax burden will provide $20 billion in tax relief to Americans this year alone, resulting in higher levels of economic output and job creation, again starting this year. Fixing this flaw in the Tax Code is particularly good for seniors. Almost half of all savings from the dividend exemption would go to taxpayers 65 and older. The average savings for the 9.8 million seniors receiving dividends would be $936. Madam Speaker, it is fair to tax companies profits. It is unfair to tax that profit again when it is distributed to individuals. For the good of our economy and the good of all Americans, Congress should move quickly to end the double taxation of dividend income.”