NU Online News Service, Jan. 27, 10:22 a.m. – President George W. Bush’s proposal to eliminate the tax on stock dividends would devastate life and annuity sales, particularly variable annuities, by reducing their relative tax advantages, according to Andrew Kligerman, a securities analyst with Bear Stearns & Company Inc., New York.

But Kligerman predicts in a commentary on the proposal that Bush’s plan for eliminating the dividend tax is unlikely to fly in Congress.