NEW YORK (CNN/Money) - The idea of a phased-in dividend tax cut appeared dead after failing to emerge from the Senate last week, but the proposal may be revived as the White House is planning a steep cut for five years and then a reappearance of the tax, according to a published report Wednesday.

Supporters of the phased-in tax cut believe it will break the deadlock over President Bush's economic growth plan, but it has been openly derided by some White House allies, the Washington Post reported.

The proposal calls for one-half of the tax to be eliminated next year, 75 percent in 2005 and 100 percent in 2006-2007. The following year the tax rate would reappear in full, according to the paper.

Kevin Hassett, an American Enterprise Institute economist with close ties to the White House, posted an editorial saying the plan is "one of the most patently absurd tax policies ever proposed," adding that the proposal would discourage companies from offering dividends over the next two years, the Post reported.

The White House hopes to garner the support of two key Senate Democrats with the new plan that will help them overcome opposition from four Senate Republicans, including Maine's Olympia Snowe, who remains concerned about the future cost of the dividend tax cut, the paper reported.

"We have to be concerned about future obligations," Snowe said, according to the Post. "Are we imposing future obligations on future Congresses that would come precisely when they have to deal with Social Security and Medicare" cost increases that will arise in the coming years?