Bush Wants Fast Tax Aid to Boost Economy

[eric&gen 0]

By DEB RIECHMANN,Associated Press

Posted: 2008-01-18 18:03:13

WASHINGTON (AP) - With recession fears rising and the stock market tumbling, President Bush on Friday called for up to $150 billion in tax relief for consumers and business - and said there was no time to waste.

Bush's urgent remarks gave fresh impetus to congressional leaders already hard at work on an economic rescue package that would include extra money for food stamps and jobless benefits in addition to tax rebates of hundreds of dollars each for millions of Americans. The hope is that people would immediately spend those rebates and give the economy a badly needed boost.

"I believe we can come together on a growth package very quickly, and we're going to need to," Bush said.

Wall Street remained skeptical. The Dow Jones industrial average dropped 59.91 points after plummeting 306 points a day earlier.

Bush said the rescue effort should be both quick and temporary, a one-time boost for a national economy that is in danger of sliding into the first recession since 2001 if it hasn't already edged across that line. The president's tone was somber in his remarks at the White House, but his mood was upbeat later in the day when he visited a factory to underscore his focus on the economy.

"Crank this sucker up," he exclaimed, an exhortation that could fit his hopes for economic revival, though he was referring specifically to a huge riding mower at Wright Manufacturing. Once the engine was roaring, Bush jumped on and steered the mower playfully.

Despite darkening economic reports, he said that if Congress passes a quick federal relief package, "We're gonna be just fine."

At the White House earlier, Bush avoided the word "recession" but acknowledged the economy was severely strained by the long housing slump and high oil prices.

"There is a risk of a downturn," Bush said.

For a stimulus package to have much impact, he said it would need to represent roughly 1 percent of the gross domestic product, or about $140 billion to $150 billion.

On Capitol Hill, Democratic leaders pledged to cooperate with Bush and congressional Republicans. Senate Majority Leader Harry Reid, D-Nev., had criticized Bush on Thursday for deciding to speak publicly on the package before a deal had been struck, but Reid said Friday he was encouraged by the president's remarks.

Some Democrats, though, said they were disappointed that Bush had focused only on taxes.

"We want a balanced package of tax rebates for the middle class and spending stimuli that jump-start the economy quickly. The president has included one; he also needs the other to quickly improve our economy," said Charles Schumer, D-N.Y.

Sen. Edward M. Kennedy, D-Mass., said that "we cannot forget that any effective stimulus plan must start and end with America's working families. The people who are struggling every day to pay their bills, heat their homes, and pay their mortgages need our help now, and helping them is the best way to be certain that any stimulus goes directly into the economy."

Signaling a willingness to cooperate, Rep. Barney Frank, D-Mass., was to say in the Democrats' Saturday radio address: "Democrats stand ready to work with the president and congressional Republicans to put together a bipartisan package including tax rebates for most Americans,and one-time increases in programs directed at those who are bearing the heaviest burdens in this economy."

Treasury Secretary Henry Paulson said the administration was being intentionally vague so as not to taint negotiations with lawmakers, but he spoke with vigor about fast action.

"When we get the legislation, we're going to run like a bunny here to get the relief out," he said.

Paulson said business incentives the administration envisions would help companies invest, expand and hire more workers. The White House estimates that a stimulus in the range of what Bush wants could create 500,000 additional jobs this year.

"We need to get this deal done and get it out and get money in the hands of our consumers and small business owners."

Democratic congressional leaders agree that tax relief should be in the package. Lawmakers are considering tax breaks for businesses investing in new equipment and a $500 rebate for individuals, said congressional aides involved in the talks. Details for couples and people with children are still being negotiated.

Senior aides to House Democrats and Republicans, however, said the measure also could contain increases for food stamps, and higher unemployment benefits.

"Democrats welcome President Bush's willingness to work together with Congress to provide urgent relief to the millions of Americans facing economic hardships," House Speaker Nancy Pelosi, D-Calif., said, adding that the two parties would "work together on the details of a stimulus package."

Bush has gone down the tax rebate road before. Back in 2001, he added refunds of up to $300 per individual and $600 per household as a recession-fighting element of the tax cut plan that had been the centerpiece of his 2000 campaign.

[Dan J 277]

By DEB RIECHMANN,Associated Press

Posted: 2008-01-18 18:03:13

WASHINGTON (AP) - With recession fears rising and the stock market tumbling, President Bush on Friday called for up to $150 billion in tax relief for consumers and business - and said there was no time to waste.

Bush's urgent remarks gave fresh impetus to congressional leaders already hard at work on an economic rescue package that would include extra money for food stamps and jobless benefits in addition to tax rebates of hundreds of dollars each for millions of Americans. The hope is that people would immediately spend those rebates and give the economy a badly needed boost.

"I believe we can come together on a growth package very quickly, and we're going to need to," Bush said.

Wall Street remained skeptical. The Dow Jones industrial average dropped 59.91 points after plummeting 306 points a day earlier.

Bush said the rescue effort should be both quick and temporary, a one-time boost for a national economy that is in danger of sliding into the first recession since 2001 if it hasn't already edged across that line. The president's tone was somber in his remarks at the White House, but his mood was upbeat later in the day when he visited a factory to underscore his focus on the economy.

"Crank this sucker up," he exclaimed, an exhortation that could fit his hopes for economic revival, though he was referring specifically to a huge riding mower at Wright Manufacturing. Once the engine was roaring, Bush jumped on and steered the mower playfully.

Despite darkening economic reports, he said that if Congress passes a quick federal relief package, "We're gonna be just fine."

At the White House earlier, Bush avoided the word "recession" but acknowledged the economy was severely strained by the long housing slump and high oil prices.

"There is a risk of a downturn," Bush said.

For a stimulus package to have much impact, he said it would need to represent roughly 1 percent of the gross domestic product, or about $140 billion to $150 billion.

On Capitol Hill, Democratic leaders pledged to cooperate with Bush and congressional Republicans. Senate Majority Leader Harry Reid, D-Nev., had criticized Bush on Thursday for deciding to speak publicly on the package before a deal had been struck, but Reid said Friday he was encouraged by the president's remarks.

Some Democrats, though, said they were disappointed that Bush had focused only on taxes.

"We want a balanced package of tax rebates for the middle class and spending stimuli that jump-start the economy quickly. The president has included one; he also needs the other to quickly improve our economy," said Charles Schumer, D-N.Y.

Sen. Edward M. Kennedy, D-Mass., said that "we cannot forget that any effective stimulus plan must start and end with America's working families. The people who are struggling every day to pay their bills, heat their homes, and pay their mortgages need our help now, and helping them is the best way to be certain that any stimulus goes directly into the economy."

Signaling a willingness to cooperate, Rep. Barney Frank, D-Mass., was to say in the Democrats' Saturday radio address: "Democrats stand ready to work with the president and congressional Republicans to put together a bipartisan package including tax rebates for most Americans,and one-time increases in programs directed at those who are bearing the heaviest burdens in this economy."

Treasury Secretary Henry Paulson said the administration was being intentionally vague so as not to taint negotiations with lawmakers, but he spoke with vigor about fast action.

"When we get the legislation, we're going to run like a bunny here to get the relief out," he said.

Paulson said business incentives the administration envisions would help companies invest, expand and hire more workers. The White House estimates that a stimulus in the range of what Bush wants could create 500,000 additional jobs this year.

"We need to get this deal done and get it out and get money in the hands of our consumers and small business owners."

Democratic congressional leaders agree that tax relief should be in the package. Lawmakers are considering tax breaks for businesses investing in new equipment and a $500 rebate for individuals, said congressional aides involved in the talks. Details for couples and people with children are still being negotiated.

Senior aides to House Democrats and Republicans, however, said the measure also could contain increases for food stamps, and higher unemployment benefits.

"Democrats welcome President Bush's willingness to work together with Congress to provide urgent relief to the millions of Americans facing economic hardships," House Speaker Nancy Pelosi, D-Calif., said, adding that the two parties would "work together on the details of a stimulus package."

Bush has gone down the tax rebate road before. Back in 2001, he added refunds of up to $300 per individual and $600 per household as a recession-fighting element of the tax cut plan that had been the centerpiece of his 2000 campaign.

I don't think its going to do much. Most people know the economy is tanking, and will likely use any rebate to pay off debt or build up savings. And this is only going to add to a budget deficit.

What we really need to do is get back to the basics, and stop growing the economy on credit. As its only really borrowing from future growth. Which will eventually catch up on us.

[eric&gen 0]

I hope it pushes through i need more money we deserve it heck they take enough taxes out of paycheck every week.

[Jesse and Hema 2]

"Crank this sucker up," he exclaimed, an exhortation that could fit his hopes for economic revival, though he was referring specifically to a huge riding mower at Wright Manufacturing. Once the engine was roaring, Bush jumped on and steered the mower playfully.

Haha... I can picture him doing that...

[Dan J 277]

I hope it pushes through i need more money we deserve it heck they take enough taxes out of paycheck every week.

Well its not as simple as that. If they give a tax rebate this year, they would have to raise taxes next year to pay for it. You can't just pull money out of a hat.

[peejay 327]

I hope it pushes through i need more money we deserve it heck they take enough taxes out of paycheck every week.

Well its not as simple as that. If they give a tax rebate this year, they would have to raise taxes next year to pay for it. You can't just pull money out of a hat.

Sure you can. Just keep borrowing from foreign governments as we have been to finance our folly.

But, of course, the value of the US dollar will tank as a result as it currently is.

This rebate is just another gimmick to stave off the inevitable. The chickens eventually come to roost.

[PlatyPius 5]

Economists and other "professionals" never seem to be able to understand it. Why is the economy #######? Here's Larry's list:

1. Manufacturing jobs have gone to China. That's a whole lot of jobs lost here. In my town, we've lost about 1000 jobs to companies moving to China. That's out of a population of about 9900. The jobs have gone to China because people buy stuff at Wal-Mart or wherever they can get it cheapest. They do this because they're poor. They're poor because of #1 and the #s to follow.

2. Cities have spent fortunes on "civic development" - tax abatements for companies that move to China once the abatement period is over, unnecessary "improvements", etc. As such, city/county/state income taxes have gone up. My town is a glaring example. For the state of Indiana, we are in the top 10 for taxes and the bottom 7 for income. (This is out of 92 counties).

3. Property taxes have tripled/quadrupled/sextupled. I don't know about the rest of the US, but Indiana has a serious property tax problem. Our property taxes have first doubled, then doubled again, and then tripled in some cases. (Most people seem to be paying triple what they were 7 years ago.) Why? Schools, are of course #1. Why? Gotta have new schools because the old ones cost too much to maintain. Why? Heating costs is a big reason. Another big reason is people breeding like rabbits. More kids = more need for more classrooms. Kids don't pay property taxes - parents do. Each person basically has X dollars for education. The more kids you have, the smaller your "X" gets. Then we all have to make up for it when y'all have out-bred "X". Bob with one kid and an identical house pays the same as Bill who has 4 kids. This inevitably causes an unbalance and ultimately property taxes go up to cover the costs.

4. Government waste - Do I even need to mention this one? The $8 million spent on "studying" something stupid like whether kiwi fruit will rot in Anchorage could have been used much more wisely and with benefit to a greater number of people. Not to mention the money spent on blowing up people who aren't like us....

5. Gasoline. People in other countries can say what they like, but $3.00/gallon gas is killing us. When I bought my truck in 2000, I was paying $0.98/gallon for gas. Today I'm paying $3.25/gallon to put gas in the same truck. Considering that most of the US doesn't have public transportation, we have no choice but to drive. Likewise, we often don't have a choice but to live in a small town, but work in the city. 100 miles a day is a normal commute here in the Indianapolis area. Figure 20 mpg as an average. That's 5 gallons/day for getting to work and back. In 2000, that was $5.00. Today that's $16.25. Now figure that out for the whole year. (about $4000 for today, versus $1300 in 2000) Has your salary gone up that much? Add in food price increases, heating increases, and property tax increases... has your salary gone up THAT much?

I'm sure there are other factors I haven't thought of, but this is depressing the hell out of me, so I'm gonna shut up now. Maybe that's why economists don't talk about it..... it makes them suicidal.....

[Ban Hammer 13,333]

Economists and other "professionals" never seem to be able to understand it. Why is the economy #######? Here's Larry's list:

1. Manufacturing jobs have gone to China. That's a whole lot of jobs lost here. In my town, we've lost about 1000 jobs to companies moving to China. That's out of a population of about 9900. The jobs have gone to China because people buy stuff at Wal-Mart or wherever they can get it cheapest. They do this because they're poor. They're poor because of #1 and the #s to follow.

2. Cities have spent fortunes on "civic development" - tax abatements for companies that move to China once the abatement period is over, unnecessary "improvements", etc. As such, city/county/state income taxes have gone up. My town is a glaring example. For the state of Indiana, we are in the top 10 for taxes and the bottom 7 for income. (This is out of 92 counties).

3. Property taxes have tripled/quadrupled/sextupled. I don't know about the rest of the US, but Indiana has a serious property tax problem. Our property taxes have first doubled, then doubled again, and then tripled in some cases. (Most people seem to be paying triple what they were 7 years ago.) Why? Schools, are of course #1. Why? Gotta have new schools because the old ones cost too much to maintain. Why? Heating costs is a big reason. Another big reason is people breeding like rabbits. More kids = more need for more classrooms. Kids don't pay property taxes - parents do. Each person basically has X dollars for education. The more kids you have, the smaller your "X" gets. Then we all have to make up for it when y'all have out-bred "X". Bob with one kid and an identical house pays the same as Bill who has 4 kids. This inevitably causes an unbalance and ultimately property taxes go up to cover the costs.

4. Government waste - Do I even need to mention this one? The $8 million spent on "studying" something stupid like whether kiwi fruit will rot in Anchorage could have been used much more wisely and with benefit to a greater number of people. Not to mention the money spent on blowing up people who aren't like us....

5. Gasoline. People in other countries can say what they like, but $3.00/gallon gas is killing us. When I bought my truck in 2000, I was paying $0.98/gallon for gas. Today I'm paying $3.25/gallon to put gas in the same truck. Considering that most of the US doesn't have public transportation, we have no choice but to drive. Likewise, we often don't have a choice but to live in a small town, but work in the city. 100 miles a day is a normal commute here in the Indianapolis area. Figure 20 mpg as an average. That's 5 gallons/day for getting to work and back. In 2000, that was $5.00. Today that's $16.25. Now figure that out for the whole year. (about $4000 for today, versus $1300 in 2000) Has your salary gone up that much? Add in food price increases, heating increases, and property tax increases... has your salary gone up THAT much?

I'm sure there are other factors I haven't thought of, but this is depressing the hell out of me, so I'm gonna shut up now. Maybe that's why economists don't talk about it..... it makes them suicidal.....

#3 - easily doubled here too within 7 years, tripled within 12. that with the taxes due to kids is right on the mark. everyone at this end of the street (no kids) is paying the same as the guy at the end of the street with 5 kids.

[Sister Fracas 5]

Bah... I'd like the money...even though I can't see it jump starting the economy.... hmmm

[w¡n9Nµ7 §£@¥€r 123]

#3 - easily doubled here too within 7 years, tripled within 12. that with the taxes due to kids is right on the mark. everyone at this end of the street (no kids) is paying the same as the guy at the end of the street with 5 kids.

A lot of towns out here are now only approving housing projects for 55+. They figure that way there will be no kids.

[forchika 4]

I say they keep the tax rebate do not want anything that I will be penalized for later!!!!! Everything is on the rise just complaining last night because when I went to Wal-mart I noticed an increase in prices at least 10 to 20cents on some items that I buy on a regular. The inflation is out of control and if prices keep rising will have to make adjustment to do without or make changes on the items I buy. I don't know, all I know is my paychecks are not increasing enough to cover the cost of the rising prices.

[Scott & Lai 12]

I hope it pushes through i need more money we deserve it heck they take enough taxes out of paycheck every week.

Well its not as simple as that. If they give a tax rebate this year, they would have to raise taxes next year to pay for it. You can't just pull money out of a hat.

Or rather, they could slash spending to pay for it, like taxpayers have to do when their family budgets are out of whack, due to say, rising taxes

[Don_Joy's Prince 0]

Yes, Why is cutting spending on programs never on the table. It is always raise taxes.

We need to cut out a lot of these worthless pork barrel spending projects instead.

[Hilarious Clinton 452]

I hope it pushes through i need more money we deserve it heck they take enough taxes out of paycheck every week.

Well its not as simple as that. If they give a tax rebate this year, they would have to raise taxes next year to pay for it. You can't just pull money out of a hat.

But you can print it.

[Jesse and Hema 2]

I hope it pushes through i need more money we deserve it heck they take enough taxes out of paycheck every week.

Well its not as simple as that. If they give a tax rebate this year, they would have to raise taxes next year to pay for it. You can't just pull money out of a hat.

But you can print it.

Wonderful idea <sarcasm>