No. of Recommendations: 3
At least they are now admitting the purpose of the dividend cut is to pump up the stock market.

http://www.washingtonpost.com/wp-dyn/articles/A47167-2003May12.html

As for the dividend tax cut, Bush has stressed repeatedly that anyone who owns stock -- whether it be individual shares or through mutual funds or pension plans -- would benefit from a general surge in the stock market, which he says the tax cut would trigger.

"If you're a teacher, you own equities," he said yesterday. "If you're a policeman, you own equities. A lot of people in this country own equities. And, therefore, the more the plan focus -- or any plan focuses -- on helping the market, the more we're helping our average citizens realize wealth."

A new study by the consulting firm McKinsey & Company specifically cast doubt on that assertion, concluding that even Bush's full dividends tax cut plan "seems unlikely to have a significant or lasting effect on U.S. share prices" or on corporate dividend policies.
Print the post  

Announcements

Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement