Bush's Tax Surprise

DEMOCRATS IN CONGRESS are gearing up to battle President Bush over his tax-cut plan, arguing that it will favor the rich. But they may be in for a fresh shock. Reports have circulated that Bush's plan, which he intends to announce this week, will include a 50% cut in the amount shareholders are taxed on company dividends. But senior officials tell TIME that Bush will go even further. To encourage investors to re-enter the stock market and foster corporate responsibility, he is set to propose that taxes on dividends be eliminated entirely.

Officials say that while the President wants to...

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