I like tax cuts, but I also understand the government needs money to finance things like this war. I won't be terribly upset if the lower marginal rates Bush has proposed don't go into effect, but I think he should do whatever it takes to get the dividend tax cut passed. John Snow gives some good reasons for it in this article:
One of his strongest arguments, he said, was that providing companies with an incentive to pay out dividends would encourage better corporate governance.
"The proposal will focus on a central issue: transparency of earnings," he said. "Companies will (be given incentive) to reveal the real earning power of their firms. You've got to earn the cash to pay it out."
Exactly. The dividend tax cut is slammed as being a "tax cut for the rich", but if it helps improve corporate governance and the clarity of a company's earnings, it will benefit us all. On a side note, deducting mortgage interest is a tax that benefits the rich too (the ones who don't pay cash for a house) – but no one is trying to change that part of the tax code.