It was reported a couple
It was reported a couple of weeks ago that Norm Coleman was one of a group of eleven Democratic and Republican Senators (Olympia Snowe, the Missing Linc, et al.) who were meeting to develop a tax cut plan that would be an alternative to the Bush proposal. This "moderate" proposal would not have included dividend tax relief. This article is from a California newspaper, but the same report appeared in the Minnesota papers. This news must have prompted an outcry from Coleman's Minnesota supporters, virtually of whom thought it was unseemly--to say the least--for Norm to betray the President who was mainly responsible for his election within a matter of days after taking office.
This constituent feedback (along with whatever pressure was exerted by the Administration) seems to have been effective. The Minnesota Republican Party produces a twice-weekly email newsletter called GOP Newsline that goes out to several thousand of the party faithful. Yesterday's GOP Newsline included a long statement by Coleman, enthusiastically endorsing the Administration's tax cut proposal, including the elimination of double taxation on dividends; Coleman's statement said in part:
“The single greatest way to get our economy moving again is to cut taxes. The single greatest way to get investors investing again is to ensure confidence in the stock market through corporate reforms and reducing or eliminating the double-taxation of stock dividends....The President’s plan, including provisions that would reduce or eliminate taxes on stock dividends, has the potential to reignite our national and world economy....With that in mind, I have been working with members on both sides of the aisle to find a way to secure the votes necessary to pass a strong tax relief package that will be signed by the President – and to avoid the kind of watered down compromise that will make the stimulus plan less effective."
My own guess is that dividend tax relief will wind up on the cutting-room floor, but if that happens, it should be bargained away, not given away. If we get the rest of the President's package, it will be a huge victory. It is good to see the Administration, together with the party's voters, enforcing some discipline.
