Olson Agrees With Company on Eliminating Double Taxation of Corporate Earnings

[1] Thank you for your January 2, 2003, letter to Secretary- Designate Snow regarding President Bush's proposal to eliminate the double taxation of corporate earnings. Because your letter involves an issue of tax policy, it has been forwarded to my office.

[2] We certainly agree that eliminating the double tax on dividend income will benefit individual shareholders such as the MDU Resources Group, Inc. shareholders, most of whom are at least 55 years old, have an annual household income of less than $75,000, and have made long-term investments in the stock of MDU Resources Group, Inc. as part of their retirement plans. In addition, we agree that eliminating the double taxation of corporate earnings will facilitate capital formation by eliminating the current law bias that favors debt financing over equity financing for businesses.

[3] We appreciate your support on this important issue.