USTA praised President Bush for eliminating double taxation on di...

USTA praised President Bush for eliminating double taxation on dividends in his new economic stimulus package and for his proposal to repeal inheritance ("death") tax. USTA Pres. Walter McCormick also took opportunity to call for deregulation, saying “the telecom industry continues to be hobbled by outdated regulations that stifle capital investment.” Commerce Dept. Undersecy. Phil Bond called stimulus proposal “a growth package that will ultimately re- ignite the technology sector.” Bond, also head of Technology Administration, said small business provision would be “the greatest source of job growth and greatest potential for technology increases.” He also said speeding up 2001 tax cuts would help with job creation and dividend tax elimination would also create jobs. “The technology community will continue to play a leading role in our economic recovery” as result of this proposal, he said. Bush’s plan was endorsed by key members of Congress. However, incoming Senate Finance Committee Chmn. Grassley (R- Ia.) didn’t offer ringing endorsement, saying only that he liked it better than Democrats’ plan. House Financial Services Committee Chmn. Oxley (R-O.) praised it but referred to it not as stimulus package but “a common sense approach to correct inequities in tax policy which discourage investment.”