What would you do with your $800?
President George W. Bush’s administration is considering an individual tax rebate of up to 800 dollars as a short term measure to help boost the sagging US economy, a media report said Friday.
The Republican leader was to unveil a fiscal stimulus plan later Friday, amid grim economic news that has united lawmakers and the Federal Reserve chief on the need to revive flagging US growth.
The White House has said Bush would propose policies, not dollar amounts, because details of the plan must be hammered out with the Democratic-controlled Congress.
“Privately, the White House has discussed its support for a tax rebate of as much as 800 dollars for individual taxpayers, more than double the 300 dollar rebate featured in a 2001 effort to spur economic growth,” the Wall Street Journal said.
In a key concession to Democrats, the US administration appeared willing to accept stimulus legislation that does not include an extension of Bush’s tax cuts, the Journal said.
Congressional Democrats, meanwhile, are suggesting they would be willing to suspend their own budget rules and accept a tax break without first figuring out how to pay for it, the Journal said.
House Speaker Nancy Pelosi said Congress would have an economy-boosting package ready by January 28, when Bush delivers his annual agenda-shaping State of the Union speech.
The two sides have been jolted into a bipartisan mood by the latest round of weak economic news and a downward spiral on Wall Street that prompted Fed chairman Ben Bernanke and others to talk up the need for swift action.
Bush and US Treasury Secretary Henry Paulson held a conference call Thursday with top lawmakers from both parties to discuss the issue, a spokesman said.
“Tomorrow, he’ll call for effective, temporary, growth measures and will lay out his principles for what an effective approach should be,” said spokesman Tony Fratto.
In remarks expected around noon (1700 GMT), the US president will “let the American people know that he does believe that short-term temporary measures are needed to help the economy through this period,” said the spokesman.