Angie Craig: “Because it is time sensitive, I thought I would talk for a few moments about the issue of double taxation of dividends…”

“Because it is time sensitive, I thought I would talk for a few moments about the issue of double taxation of dividends that is currently before our Finance Committee and certainly is a major component of our President's stimulus package. Some weeks ago, before the Special Committee on Aging that I chair, we looked at this issue as it relates to older Americans. I found it fascinating that 71 percent of all taxable cash dividends are received by Americans age 55 and older. Dividend income benefits older workers and seniors who worked very hard throughout their working life, sacrificed, saved, and invested in stocks, and in their senior years were most assuredly concerned that those stocks were dividend producers. Unfortunately, dividend income is taxed twice--we know that--once at the company level and then again at the individual level. In effect, it certainly punishes older Americans for taking personal responsibility in their lives to save and build a little nest egg as a part of their total retirement. This pie chart demonstrates that very clearly. Dividend penalties are received by more than half of all of our seniors. This pie chart shows that 52 percent of seniors receive taxable dividends. Nine million seniors are age 65 and older, many on fixed incomes, and rely on a little dividend income.”