Washington (May 2, 2003) -- Although a staunch proponent of eliminating the dividend and capital gains tax, Treasury Secretary John Snow, labeled a modified House plan to reduce dividend taxes a “big step in the right direction.”

A modified version of the tax-cut plan was proposed by William Thomas, R-Calif., chairman of the Ways and Means Committee, which would cut the tax on dividends and capital gains to roughly 15 percent for middle-to-upper income families and 5 percent for those in the low-income bracket.

Snow, along with Commerce Secretary Donald Evans have been pushing the for a full exclusion of the dividend tax claiming that such a measure is necessary to give financial markets a much-needed boost.

House Democrats plan to reveal the details of their stimulus plan next week.

-- WebCPA staff

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