Much like his other tax cuts, when President Bush announced his dividend tax relief package almost a year ago, the mainstream press and many on the left criticized it as useless and a gift to the rich. Just as the other tax cuts have proved them wrong and led to an economic upswing, the dividend tax cut has also proven them wrong.
An on-air CNBC report stated that since the inception of the president’s dividend tax relief package (and largely because of it), several hundred companies have increased their dividends or started giving dividends for the first time. This certainly has a positive impact on the general economy as it pumps more money back into the consumer’s hands, but perhaps more importantly, this specific tax cut is especially good for senior citizens.
Many senior citizens look to stocks with high dividends for a supplemental income. Understandably, they are averse to the higher risk involved with straight investment into stocks, so they gravitate to these companies with high dividends because at the very least, no matter what the stock price does, they know they will get that dividend. This strategy of dividend investing has become a major source of income for millions of senior citizens across America.
Now, because of President Bush’s dividend tax cuts, these senior citizens will not only be paying less taxes on their dividends, but they will now be getting higher dividends from the company in the first place. All that means is mo’ money, mo’ money, mo’ money.
The 2004 election is a long way away, but after seeing President Bush’s move with the dividend tax cut and Medicare reform, it's becoming obvious that he is the best candidate for the elderly. Unfortunately, there has been little “bragging” by the GOP to alert seniors of how much this dividend tax cut package has helped them. Only time will tell if Republican strategists will fix that error. But for now, it seems like President Bush is determined to win Florida--without recounts this time.
Respond to this posting
Back to top