April 29, 2003
By David Shepardson / The Detroit News
DEARBORN -- Top executives at General Motors Corp., Ford Motor Co. and DaimlerChrysler's Chrysler Group on Monday endorsed President Bush's controversial plan to cut taxes on corporate dividends.
"We're very supportive of his plan, and we'd like to see it enacted as soon as possible," Ford chairman and CEO William Clay Ford Jr. said.
The executives spoke after a half-hour private meeting with Bush to discuss ways to jump-start the sluggish economy.
GM President and CEO C. Richard Wagoner said the dividend tax cut would boost stock prices by 6 percent to 15 percent, helping increase the value of the company's pension funds.
At the end of 2002, GM's pension fund was underfunded by $19.3 billion, in large part because of the downturn in the equities markets.
About 35 percent to 40 percent of GM's pension fund is invested in U.S. stocks.
Wagoner said the auto industry is "certainly not as robust as it could be." The dividend tax cut "would be very good for the industry."
Bush has proposed a $726 billion tax cut over 10 years, but Congress has reduced it. The GOP-controlled House has capped tax cuts at $550 billion, which Bush supported.
The Senate voted to limit tax cuts to $350 billion, and the differences will be worked out in committee.
By David Shepardson / The Detroit News
DEARBORN -- Top executives at General Motors Corp., Ford Motor Co. and DaimlerChrysler's Chrysler Group on Monday endorsed President Bush's controversial plan to cut taxes on corporate dividends.
"We're very supportive of his plan, and we'd like to see it enacted as soon as possible," Ford chairman and CEO William Clay Ford Jr. said.
The executives spoke after a half-hour private meeting with Bush to discuss ways to jump-start the sluggish economy.
GM President and CEO C. Richard Wagoner said the dividend tax cut would boost stock prices by 6 percent to 15 percent, helping increase the value of the company's pension funds.
At the end of 2002, GM's pension fund was underfunded by $19.3 billion, in large part because of the downturn in the equities markets.
About 35 percent to 40 percent of GM's pension fund is invested in U.S. stocks.
Wagoner said the auto industry is "certainly not as robust as it could be." The dividend tax cut "would be very good for the industry."
Bush has proposed a $726 billion tax cut over 10 years, but Congress has reduced it. The GOP-controlled House has capped tax cuts at $550 billion, which Bush supported.
The Senate voted to limit tax cuts to $350 billion, and the differences will be worked out in committee.