FROM THE OFFICE OF PUBLIC AFFAIRS

Treasury Secretary John Snow will travel to Orlando, Fort Lauderdale and Naples, Florida on Thursday and Friday, April 3-4, to discuss President George W. Bush’s efforts to strengthen the economy and to promote President’s Jobs and Growth plan. 

The Secretary will meet with members of the hospitality and tourist industry, local economic officials, small business owners, individual investors, business leaders, and members of the financial services industry to highlight the importance of swiftly enacting the President’s Jobs and Growth plan, which will create and secure jobs, accelerate and sustain our economic recovery, and increase workers' standards of living.  More than 5 million taxpayers in Florida will have lower income tax bills in 2003 under the President’s growth package.

During meetings with senior citizens, the Secretary will pay special attention to discussing the elimination of the double taxation of dividends – a key component of President Bush’s Jobs and Growth plan.  More than half of all taxable dividends go to America’s seniors and one point seven million taxpayers in Florida will benefit from the exclusion of dividends paid from previously-taxed corporate income. 

The Secretary will discuss how elderly taxpayers will benefit from the provision that would allow them to exclude 100 percent of dividends from taxable income.   Economists estimate that 9.8 million senior households receive dividend income that is currently taxable.  Seniors rely on these checks for a steady source of income in their retirement.   Yet, their income is taxed twice – once at the corporate level and then again on their own return.  The President’s Jobs and Growth Package would increase seniors’ rates of return on investments by eliminating the double taxation of dividend income. 

Administration estimates show that the dividend exclusion would provide tax relief for 7 million elderly taxpayers by an average of $1,252.