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

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.
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