May 19, 2003

With the help of two democrats, the Senate handed President Bush a possible victory: a temporary repeal of the double taxation of dividends as part of the economic package. Under the provision, investors could exclude 50% of dividend income from taxes this year and 100% of such income in 2004, 2005 and 2006. The hope is that if the measure goes through it will become permanent because congress isn't likely to allow the measure to expire in 2007.

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