Senate Republicans Gain Crucial Democratic Vote on Tax Cut New York Times (05/15/03) ; Firestone, David
In exchange for lawmakers' agreements to support a $20 billion financial aid package for the states, some Senate Democrats have agreed to support efforts by Republican lawmakers to temporarily repeal the dividend tax. Support from Sen. Ben Nelson (D-Neb.) and Sen. Zell Miller (D-Ga.) could give Republicans enough votes to push forward a dividend plan proposed by Sen. Don Nickels (R-Okla.) that is different from the proposal approved by the Senate Finance Committee last week, in that it would eliminate half of the dividend tax this year, fully eliminate the tax over the course of three years, then reinstate the full tax by 2007. Advocates of the plan say it will give the dividend issue more pull when the Senate tax proposal reaches a joint conference to be reconciled with the tax-incentive plan previously approved by the House.