Business Groups Begin New Effort On Dividend Taxation

Top business groups are launching a new effort to secure passage of President Bush’s plan to eliminate individual taxation on dividends. The Tax Relief Coalition, the Business Roundtable and Citizens for a Sound Economy will co-chair the new TRC Committee for Dividend Benefits. The dividend proposal is the centerpiece of President Bush’s $695 billion economic growth package. But the plan has drawn questions even from moderate lawmakers of both parties, who are concerned about the overall price tag of the package. The new TRC committee held its first meeting today. The committee plans an extensive effort that will include public outreach, the generation of economic studies, forums for discussing the dividend plan, and advertising, according to a statement released by the TRC. “The TRC will fight very hard for dividend reform,” said U.S. Chamber of Commerce vice president Bruce Josten. The TRC is comprised of leading business associations, including the Chamber, the National Association of Manufacturers, the National Association of Wholesaler-Distributors, and the National Restaurant Association.