WASHINGTON (CBS.MW) - Tax-cut proposals take center stage on Capitol Hill Tuesday as lawmakers in both chambers begin considering cuts ranging from $350 billion to $550 billion.
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On the Senate side, Republicans will offer some form of dividend tax elimination in their version of a tax bill this week, according to the chamber's top tax writer.
Sen. Charles Grassley, R-Iowa, the panel's chairman, has been working since last week to cobble together a package that will fit within the $350 billion tax-cut limit in the Senate's budget plan.
Under Grassley's proposal, taxes paid by individuals on dividend income would be gradually reduced to zero by 2005. But to fit into the $350 billion ceiling he agreed to, Grassley would then restore the current tax on dividends beginning in 2006.
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