Individuals currently pay a lower rate of tax on capital gains and certain corporate dividends.

It has also benefited from the 2003 federal tax cut, to a maximum rate of 15 percent on most corporate dividends.

Also, they can own shares in other corporations and receive corporate dividends 80% tax-free.

The Bush plan was advertised as ending the double taxation of corporate dividends.

The year just ended brought the first improvement in corporate dividends in years.

These other countries encourage savings through lower taxes on corporate dividends, interest income and capital gains.

"That must have put a nice dent in the corporate dividend."

A similar pattern holds for the impact of cutting taxes on corporate dividends.

He expects the average corporate dividend to increase by 15 percent this year, the strongest growth in more than a decade.

The announcement of a dividend comes at a time when taxes on corporate dividends have been reduced, prompting some big companies to offer one.