Saturday, December 28, 2002

Bush Aides Rethink Politics of Tax Cuts (

Even more than past Republican administrations, Bush tax plans are heavily tilted in favor of the rich.

Aides to President Bush had favored a plan to accelerate by a year cuts in income tax rates scheduled to take effect in 2004. But Bush's political advisers, concerned that Democrats will use a class-warfare argument to fight an accelerated reduction in the top rate, have suggested dropping that plan, instead emphasizing a cut in taxes on stock dividends.

When Congress returns next month, the White House is expected to propose a $300 billion economic stimulus package that includes cuts in dividend taxation, the accelerated income tax cuts, and more generous incentives for business investment.

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