NYTimes -- Bush's Plan Taxes Certain Dividends, Fine Print Reveals

The simple tax-free dividends tax package is actually very complicated. Not all dividends will be tax-free, companies that do not pay dividends pass a tax break to sellers of their stock. This is too complicated to go into for a proposal that should not be passed. Read if you want the details.

More importantly read the other New York Times article about the Alternative Minimum Tax, which was designed to target the rich but now hits the middle class.

Alternative Tax Looms Large Despite Plans for Other Cuts

Paradoxically, the alternative minimum tax rarely applies today to those making more than $627,000. But because it has not been adjusted to reflect inflation or other economic changes it now applies to some single parents making as little as $32,000. It is the fastest-growing tax affecting those making $50,000 to $500,000 and the revenues it raised were critical to the financing of the 2001 tax cuts, which primarily benefited the top 1 percent of taxpayers, who on average make more than $1 million each.