• Proposal to Eliminate Taxes on Corporate Dividends Could Change Investment Strategies, Raising Funds from the Public and Operating Private Corporations
  • September 23, 2003
  • Law Firm: Nixon Peabody LLP - New York Office
  • President Bush's proposal to exclude corporate dividends from taxation at the individual level, if enacted, could trigger significant changes in the way Americans invest, the way corporations raise money, and the way shareholders of private corporations operate their corporations. The details of the proposal have yet to be worked out. In addition, despite the fact Republicans control Congress and the Executive Branch, there is no assurance that the proposal will be enacted, or what form it would take if enacted. Still, it is important to consider some of the fundamental changes that the proposal could provoke, if it is ultimately enacted. Attention is also merited because the proposed effective date is January 1, 2003.