Bush Favors Tax Rebates In Stimulus Plan

Also Wants Business Tax Breaks To Help Avert Recession; Bernanke Joins Calls For Aid

(CBS/AP)  President Bush told congressional leaders privately on Thursday he favors personal income tax rebates and tax breaks for businesses to help avert a recession, officials said, as Federal Reserve Chairman Ben Bernanke joined in calls for an economic stimulus package.

Bush spoke with congressional leaders as top House aides worked on an economic rescue package that included more money for food stamp recipients and the unemployed as well as tax rebates and cuts.

Officials described the developments on condition of anonymity until a formal announcement was made, and no further details were immediately available about the size of the rebates or components of the emerging package.

The government last sent out tax rebate checks during the 2001 recession, reports CBS News correspondent Anthony Mason. Between July and September of that year, individuals were sent $300 checks; married couples: $600. In all, 90 million households received $38 billion in rebates.

One official said the president did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010. That would eliminate a potential stumbling block to swift action by Congress, since most Democrats oppose making the tax cuts permanent.

Bernanke voiced support for a stimulus package in an appearance before the House Budget Committee, but said it had to be quick and temporary.

"Putting money into the hands of households and firms that would spend it in the near term" is a priority, Bernanke told the committee.

Bush planned to talk about his criteria for the program at the White House Friday morning and later that day in a speech at a manufacturing plant in Frederick, Md.

In his committee appearance, Bernanke said such a plan should be aimed at quickly getting cash into the hands of people, especially those with low and moderate incomes. Bush wasn't going to spell out any specifics in his remarks, but instead demand that any package be effective, simple and temporary, said White House press secretary Dana Perino.

Perino said that Bush and congressional leaders from both parties consulted via conference call Thursday for about 30 minutes about their plans to work together on growth measures. In the Capitol, House Speaker Nancy Pelosi, D-Calif., has talked of a package totaling $100 billion or more.

The rush to swing behind a stimulus plan underscored the political imperative of responding to a growing concern about the possibility of recession.

The economic headwinds caused by the housing slump seem to be getting stronger, reports Mason. In Atlanta, now through the weekend, more than 500 foreclosed houses, are being auctioned to the highest bidder.

Bernanke declined to endorse any particular approach in Capitol Hill appearance, but did say that he preferred one that would act quickly, and not have a long-term adverse impact on the deficit. "The design and implementation of the fiscal program are critically important," he said.

He spoke as senior aides to House Democrats and Republicans reviewed an emerging plan that included tax rebates for individuals, breaks for businesses and more money to help food stamp recipients and the unemployed. Additional aid to help states complete construction projects was also among the proposals under consideration, according to officials familiar with the discussions. They spoke on condition of anonymity, saying they did not want to pre-empt an eventual announcement.

Additional details were not immediately available.

Former Treasury Secretary Larry Summers told CBS' The Early Show that the federal government needs to address the nation's economic troubles on several levels.

"Injecting more money into the economy so consumers are able to spend more. When consumers are able to spend more, there's more demand in the economy. That may come through tax relief that's properly targeted to those who are most likely to spend it," Summers explained.

Summers indicated that relief may also come from accelerating benefits to those who are most likely to spend it: Middle and lower income Americans.

[figuy30]

For those of you who did not get the story, the Republicans proposed NO participation for any family earning $24,000 a year or less. Up to $800 for those whose income is at least $40,000, and $1,600 for those earning $100,000 or more. Lower income? Middle class? Just forget about Americans who give their lives for this country day in and day out. Oh, and the Republicans want you to vote for them again!

[figuy30]

In reading a newstory today, I find that Republicans favor excluding older Americans, a group which consists of a large number of Veterans, and citizens who have ALREADY paid lots of taxes all their lives from any participation of any tax rebate program to help the economy under the guise "they don''t pay taxes". Is there a reason this is being called a tax rebate? Why not "Aid to Americans"? Perhaps by excluding this group of older Americans the economy can be better served by the IRS sending "tax refunds" in the amount of $4000-$5000, as they do each year, to welfare/tax frauds and deadbeats.

[lawyertom1]

Of course he does. One more gift from The Shrub to his buddies.

[standlee5]

Give every fulltime LEGAL wage earner 10K to make up for the illegal immigrant wage dilution we''ve endured.

[mcvet]

The DEMONcratic party is responsible for this shiite. With its political strategy to win the White House, Those leftists have emboldened the terrorists to attack us as well as emboldened Iran on its ambition to cut the flow of oil in the Persian Gulf. Thats why the oil has hit $100 a barrel.



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Posted by BaghdadsHere at 05:44 PM : Jan 20, 2008
+ report abuse

ROFLMAO Sparky YOU have got to stop sucking on that Swastika... it''s melting what little there ever was of your brain!! ROFLMAO How can anyone blame the party who wasn''t in control of ANY branch of the Government for ANY of this mess? You in the Nazi Youth need new leadership... maybe you can borrow from the Skin Heads or the KKK?? They are completely out of their minds but honestly they make more sense than this trash!! Sieg Heil Bush!! ROFLMAO Now this one is one of those who will follow the fuhrer and the party all the way to the bunker!!!! ROFLMAO

[mcvet]

Adminis
trations inherit the mess left behind by previous administrations.

There is a time delay.


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Posted by ilikecats1 at 05:48 PM : Jan 20, 2008
+ report abuse

Now Sir Lies-A-Lot was handed an economy that was GROWING AND he was handed a BALANCED BUDGET AND A SURPLUS!! That means to be correct it has taken almost 16 years for the PREVIOUS screw ups, another Bush, to catch up with him. Now even for a Fascist, some of the dumbest humans to ever belong to the Toe Tappers, that''s rediculous!! ROFLMAO I also think it''s highly unlikely you will find many American''s outside the fascist deep south, who will buy this garbage. Sieg Heil Bush!! ROFLMAO

[baghdadshere]

Adminis
trations inherit the mess left behind by previous administrations.

There is a time delay.

Posted by ilikecats1 at 05:48 PM : Jan 20, 2008

ilikecats,,,,Agreed. HungryTroopBasher1968 has cut and run from this post. If you wanna confront him go to the Gaza article.

[baghdadshere]

Did anyone happen to notice that whenever we have a republican president, our economy dies and we end up in a recession? Aren''''t they supposed to be the party of "big business"?

Posted by hungryTroopBasher1968 at 11:07 AM : Jan 20, 2008

HungryTroopBasher1968,,,,,Always bashing the commander -in-chief. You"re the most anti-American American citizen I"ve seen. I"m supposing you are American arent you?


The DEMONcratic party is responsible for this shiite. With its political strategy to win the White House, Those leftists have emboldened the terrorists to attack us as well as emboldened Iran on its ambition to cut the flow of oil in the Persian Gulf. Thats why the oil has hit $100 a barrel.

[sharncedar]

The positive effect of a large deficit spending stimulus is that it will cause inflation of the currency. This will help to cancle our debts to foreign countries by making the nominal principle outstanding less valuable. If we can inflate our currency by 200%, that is like canceling half our debt held by China and Saudi Arabia and others. What else can we do at this point? We are hardly likely to be able to pay it back - with what export product, fat illegal Mexican children? Illiterate white teenagers who play video games all day?

[mapjo]

Since October 9, 2007, the market is down: DJIA -2,065 points or-14.58%, S&P 500 -15.33%, and NASDAQ -18.16%.
My blue chip stock portfolio is down 15% (about $100,000). I%u2019m SO excited that I%u2019m going to get as much as $800 to offset that loss. Whoopeee.