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Dividend Tax Rate Reduction

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What are the changes that Bush enacted to how dividends are taxed and how will this policy affect corporate profitability?

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"Companies may now pay lower dividends because at lower rate the shareholder will be able to get the same money in hand."

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Dividend Tax Rate Reduction
Qualified dividend income will be taxed at a maximum rate of 15%; the rate is 5% if your taxable income is less than $56,800 (joint) or $28,400 (single).
The 15% rate is retroactive to January 1, 2003 and ends December 31, 2008.
The 5% rate is also retroactive to January 1, 2003 and drops to 0% for 2008. The old, regular rates return again in 2009.
The technical ...

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