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A close examination of data strongly suggests that most corporateequity is not held by large tax-exempt investors, leaving thecritics to search for another reason to oppose the President'splan.
Over time, the effects of lowering the cost of capital throughending the double tax on dividends leads to higher economic growthand widespread economic benefits.
Although policymakers are currently discussing an $825 billion economic stimulus package, completely eliminating capital gains and dividend taxes would be a cheaper and more effective means of sparking economic renewal.