Zeev,
Not all retirees have dividend paying equities in their IRA's.
The tax on dividends is a double taxation in that the corporation already pays tax on that dividend. It's regressive and has always been an economic drain.
You have eloquently, if not dramatically, made your case. However, I believe the impact is significantly overstated. In any event, relax, the tax and spend Congress will return to full throttle once the economy finds traction and will find new ways to extract money from the rich and the wannabe's.<g>
I think I'll run for Congress.<vbg>