March 10, 2003

Cost of Dividend Proposal Only a Small Fraction of Administration Tax Agenda
By John Springer

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A new analysis by the Center on Budget and Policy Priorities, Removing the “Dividend” Proposal Would Reduce Ultimate Cost of President’s Tax Agenda by One-sixth or Less, explains that removing just the proposal to eliminate the individual taxation of corporate dividends would not make the Administration’s tax cut agenda affordable.  While the dividend proposal makes up half of the “growth” package, it is a much smaller fraction of the Administration’s tax cut agenda as a whole.

The Dividend Proposal and the President’s Overall Tax Proposals

Joint Tax Committee Estimates (in billions)


Cost 2003-2013

Cost in 2013

“Dividend” proposal



All proposed tax cuts



Share attributable to dividend proposal