Tuesday, September 16, 2003

The report found that since March 2000, the stock market had lost approximately $7 trillion. Investors had been wary of investing money because of the poor state of the economy.

But investors began to become increasingly confident in the stock market again ever since the tax changes went into effect, according to the report.

Some other key findings in the report include:

- The stock market rebound that resulted from the 2003 tax cuts was much more stark than the one that took place after the highly-touted 1997 capital gains reduction.

- Since the tax cuts were signed into law, the stock market has seen $1.2 trillion in new stock market revenue created.

- The Standards & Poor 500 has seen noticeable growth and initiating dividend payments are 51.6 percent higher than 2002 levels.

- Shareholders have benefited from $50 billion more in new and increased dividend payments than they received in 2002.

- The adverse effects of 9/11 and terrorist activities on investor confidence have been substantially reduced.

- The recent growth in the stock market is the predecessor to an overwhelming economic boom in the American economy.

Clifton says the tax cuts are doing exactly what President Bush expected them to do: revive the economy.

"The tax cut was tailored to address the U.S. economy's most fundamental imbalances and get the financial markets moving again," Clifton remarked. "After the first 100 days, markets are way up, investors are confident, and business investment is set to be put in place. Add in the recent income tax changes, low interest rates, and investment incentives and it is clear that the U.S. economy is set to take off."

posted by Shaun Kenney | 9/16/2003 12:24:00 PM | 0 comments

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