Bush Will Continue To Push Tax Agenda In 2004

by Mike Godfrey, Tax-News.com, Washington

19 January 2004

As the race for the White House begins in earnest, President Bush is expected to use the platform of the annual State of the Union Address tomorrow to further push his low tax economic agenda.

In his speech, the President is expected to call for the tax cuts that have been enacted as temporary measures to be made permanent, such as the reductions in capital gains and dividend taxes and the elimination of inheritance tax set to be revived at higher rates in 2011.

Mr Bush is also likely to resurrect a proposal that would allow younger generations of workers to invest a segment of their social security taxes in stock market funds, giving them the choice to opt out of the current retirement savings system, according to White House aides.

Other tax initiatives likely to be advanced by the President this year include the creation of all-purpose lifetime savings accounts where funds can be withdrawn tax-free, and of retirement savings accounts where money can also be withdrawn tax-free once the account holder reaches a certain age.

Recommended