President Bush announced this morning that he wants to try a time-honored tactic in times of recession. He proposes a "growth package" of at least 1 percent of the gross domestic product -- about $140 billion.
The president:
- Wants to "bolster both business and consumer spending."
- Said in order to be effective, it should be an incentive for major and small businesses to spend big bucks right now.
- Wants the tax cut to include direct and rapid income tax cuts for everyone.
- said, "Letting Americans keep more of their own money should increase consumer spending."
- Did not propose a spending plan.
- Proposed that this package would be "temporary."
Bush did not mention how much of a tax cut he would propose for the average American,
but on Thursday, congressional leaders kicked around ideas that would include a tax rebate of up to $800 to each taxpayer. The kind of details still to be worked out are whether, for example, the rebate would be a lump-sum check that would land in your mailbox or whether it would be a checkoff on your income tax form.
The stock market, which had been roaring all morning on news of the president's speech, cooled after he didn't get specific. The market did like the news that businesses would get some relief.
