Bush Urges Congress To Pass Stimulus Bill

Senate Under Pressure To OK Economic Package To Get Tax Rebates To Workers In May

(CBS/AP)  President George W. Bush urged Congress on Friday to quickly pass an economic stimulus package void of extraneous spending, saying only quick action will kick start the sputtering U.S. economy. "I strongly believe it would be a mistake to delay or derail this bill," Mr. Bush said.

"I understand the desire to add provisions from both the right and the left," the president said, adding that would be an error.

The president made his remarks at a gathering with House Republicans attending a congressional retreat at a mountain resort near Washington.

A much-anticipated deal between the Bush administration and once-warring House leaders to speed tax rebate checks to workers starting in May has the Senate in a bind over whether to try to add to the measure. The White House warned against that on Friday.

Few public developments were expected Friday as lawmakers digest Thursday's announcement of a hard-won agreement between House Speaker Nancy Pelosi, Republican leader John Boehner and Treasury Secretary Henry Paulson that would pump about $150 billion into the economy this year and perhaps stave off the first recession since 2001.

The Senate very often wins its battles with the House. But now, with the power of the administration behind them, House leaders are optimistic that their simply drawn measure - providing rebate checks to 117 million families and $50 billion in incentives for businesses to invest in new plants and equipment - would prevent the Senate from making significant changes such as extending unemployment benefits.

The White House is pressing for quick action and leaders in the House fear that if the Senate attempts to rework the legislation the deal could come apart. President Bush's press secretary, Dana Perino, suggested that Bush would be opposed to increases in spending by the Senate.

"We believe that this a very good bipartisan compromise and it would be unfortunate if the Senate did anything to slow it down or blow it up," she said. "It will give the economy the boost that it needs but only if it arrives on time. ... There is a need for speed when it comes to this economic growth package and Americans are expecting action now."

Under the agreement announced by the White House, Boehner and Pelosi, individual taxpayers would get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child. In a key concession to Democrats, 35 million families who make at least $3,000 but don't pay taxes would get $300 rebates.

The rebates would phase out gradually for individuals whose adjusted gross income exceeds $75,000 and for couples with incomes above $150,000. Contributions to IRA and 401(k) retirement accounts and health savings accounts would not count toward the income limit.

"This package will lead to higher consumer spending and increased business investment," Mr. Bush said in hailing the agreement.

The bill will go straight to the House floor next week and on to the Senate, where Democrats such as Edward Kennedy of Massachusetts promise to try to add elements such as extending unemployment benefits for workers whose benefits have run out, boost home heating subsidies and raise food stamp benefits.

Kennedy said he wants "to strengthen this package to provide unemployment insurance to workers looking for jobs and to help families coping with high heating costs and skyrocketing food prices."

Such ideas may be popular in the Senate, but the Bush administration has signaled it's unlikely to welcome efforts to broaden the measure, and pressure was mounting in the Senate to accept the deal.

"The American people are not going to have a lot of patience for taking time," Paulson said.

Still, many Democrats, including House Ways and Means Committee Chairman Charles Rangel, D-N.Y, were deeply unhappy that Pelosi agreed to jettison those proposals during the talks.

"I do not understand, and cannot accept, the resistance of President Bush and Republican leaders to including an extension of unemployment benefits for those who are without work through no fault of their own," Rangel said.

If the Senate gives quick approval, the first rebate payments could begin going out in May and most people could have them by July.

It has become increasingly clear that the economy is teetering on the edge of recession, if it hasn't already gone over that line. The crisis in subprime home loans has hit hard at many lending institutions, cramping credit for almost everyone else. Economic growth has all but disappeared, companies are reporting big losses and Wall Street had been tumbling day after day - even after emergency Federal Reserve rate-cutting - until Wednesday's hopeful talk about the stimulus deal. The Dow Jones industrial average was up more than 100 points Thursday after soaring nearly 300 the day before.

For businesses, the stimulus measure would allow them immediate tax write-offs for 50 percent of the purchase price of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. A provision to allow businesses suffering losses now to reclaim taxes previously paid was dropped in end-stage talks.

Senate Majority Leader Harry Reid, D-Nev., said the goal was to send the package to the White House by Feb. 15 for Mr. Bush's signature. He noted, however, that the Senate was likely to try to add more spending for the unemployed, food stamp recipients and states suffering budget crunches.

Bush had supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households of people who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center.

Meanwhile, the housing market keeps getting uglier, reports CBS News correspondent Anthony Mason. New figures show the median price of a single family home actually fell last year for the first time since the Great Depression, while sales plummeted 13 percent - the largest decline in 25 years.

To address the mortgage crisis, the package raises the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

[inventagod]

Hmmm...

This smells like a bribe, calculated to land in our pockets during an election year...

...the checks in the mail...

[mcv57]

What is all the excitment about? They are going to pass it. If they don''t, the stock market will bottom-out. That simple.

[easeup-2009]

I''m hoping the wife''s in a good mood so I can get some stimulus tonight......

[ora734]

Headline today, "OIL up on stimulas hopes", they want part of our rebate as well, they have already caused this whole mess if the truth be known to the American public. We got to get these fund groups out of the futures market.

Oil FUTURES manipulation is killing the stock market. There is no shortage of oil, only a shortage of refiniers, which is all by design. This bottle neck will eventual kill the worlds economy. If farmers could manipulate and hoard food, they could starve the world to death. Oil and grains need to be removed from the futures market to get rid of the profiters that are killing this economy...... No one is pointing a finger of acusation at oil and ethanol as reeking havoc by causing inflation to sky rocket because they are making money off this "nessecity items" bonanza, that willcause an econonic apocalypse.

[canyoutellme-2009]

Does anyone know what TAX YEAR they will be looking at? 2006? or 2007? any link that shows it? Thanks in advance.

[sharednotion]

Won''t it take a while for the Treasury in Washington to process & print rebate checks, plus an additional lapse in time until the checks arrive in the mail, and are cashed or deposited? Suppose that, instead, the Congress passes a bill instructing ALL employers in the country, to IMMEDIATELY lower paycheck withholding for federal income tax to zero for, say, the first five weeks following the date that the president signs the bill into law? Wouldn''t that start getting money into people''s hands quicker (and, save the feds from spending money printing & mailing rebate checks)?

[excoachken]

Stimulus package------------- Sounds like a movie I saw once that hardly had any words.

[sgtrds]

Drop the rebates and use the money to extend unemployment benefits. The same money will stimulate the economy just as much (though it''s a joke in either form), but at least the cash will be going to those who really need it. To those who have not been able to find a job in Bush''s economy and are no longer counted as unemployed. Many of them have families and they need to pay winter bills. Give it to the poor, because their numbers have skyrocketed under this criminal administration.

[gopack443]

SharedNotion, Your idea makes WAY to much since for the government to do it! Nice try though.

[lovegetpeace]

Folks,

It is a pleasure to read so many NeoConservatives criticize the Democrats especially now after they have nothing even moderately good to say about their records/policies in the last couple of years.

Just to remind my reading audience, NeoConservatives, with their 2001 and 2003 Tax Cuts for the super riches, have given us the following benefits:
1) A 4.1 and counting Inflation Rate
2) A deep and counting recession
3) A 10 Trillions and counting Federal Debt.
4) A 5.0 and counting unemployment rate.
5) 2 un-subtained and counting wars.
6) A housing and counting meltdown
7) Record Corporation and counting Profits
8) Outsourced and counting huge amount of high paying professional jobs, we do need and want, to oversea countries.
9) 48 millions and counting Americans without health insurance.
10) Almost last and counting grades from our education system compared to other much poorer countries.
11) The biggest embarrassing LIE since the birth of civilization with the story of the Weapons of Mass Destruction in Iraq.
12) The highest disrespect and counting around the world, including from our closest allies whom will not send not one more troop into Iraq and Afghanistan.

I do not understand why the NeoConservatives did not give us the 4th Great Depression so to destroy this American Empire once and for all. Maybe they forgot to make their Tax Cuts permanent when they controlled the congress beside the white house.

Congratulations NeoConservatives! Finally, "Mission Accomplished"

[sgtrds]

lovegetpeace

You could add this. Poverty was dropping like a rock under Clinton, but as soon as Bush came into office it turned around and started climbing again.



http://en.wikipedia.org/wiki/Image:Poverty_59_to_05.png

[dakotaclark]

Hmmm...

With regard to the "Economic Stimulus" the key operative words focus on "earned income."

Does this mean that folks who are receiving Social Security Disability, VA Disability, or Disability Retirement, who can no longer work due to their disabilities; and, who are just barely able to manage monthly obligations, will be left out in the cold on this one - as usual?

This sounds and looks like an economic stimulus for many folks, except disabled people.

I hope this is not true, and that there will be some "economic stimulus" for disabled folks too.

[toolmangler-2009]

Congratulations NeoConservatives! Finally, "Mission Accomplished"
Posted by lovegetpeace at 02:23 PM : Jan 25, 2008



Compared to Bushy_baby, Nixon looks like an ''Angel''

[slim1h2o]

Compared to Bushy_baby, Nixon looks like an ''''Angel''''

Posted by ToolMangler at 02:58 PM : Jan 25, 2008

Yeah, Maybe even,,Dare I say, a Saint!

Afternoon Tools

[bkotarsk]

Did anyone notice that the market was down 5 points before his speech... Started tumbling during his Speech and is Still tumbling.. Just can''t wait to see the markets action After his State of the Union Message... this indicates SELL before his Speech .

[lovegetpeace]

Hay SgtRDS,

What I love most about the NeoConservatives policies is that the richer and rich gets, the poorer the poor gets, meaning more poverty. The more poverty we have, the better are the possibilities nobody will listen to the NeoConservatives. In other countries, they call it ''viva la revolution''. Every revolution around the world have been because of increase poverty.

NeoConservatives are idiots because they shoot themselves between the eyes by not distributing wealth instead of concentrating it around a few couples.

[sgtrds]

NeoConservatives are idiots because they shoot themselves between the eyes by not distributing wealth instead of concentrating it around a few couples.

Posted by lovegetpeace at 03:27 PM : Jan 25, 2008

They keep doing it because their ultimate goal is to create a two class society. They want to create a permanent upper rich ruling class and a permanent poor class of basically servants. They don''t want smaller government, they want no government at all. A complete return to nobility ruling over serfs. They honestly believe that this is the best way for a society to function. They are elitist pricks.

[excoachken]

Bush seems to think that $600 will act like Viagara for a Dow that can''t seem to get there by itself. The key that George doesn''t tell us is that it is another quick fix with the next generation paying for it. Oh, I guess it is more like the blue pill than I first thought.

[marcodele]

It is appropriate that the Pay Day Loan President who borrows billions from China thinks a band aid will heal the bleeding arteries he created. The "anti-deficit spending" president did a great job spending us into a massive deficit, despite inheriting a surplus from the Clinton administration (who managed to take another Bush the First deficit and turn it into a surplus.)

Bushie, you''re doing a heck of a job.

[jazz3441]

I am taxed on my disability because I am married, so does this mean I don''t qualify as a "working" person to qualify for rebate even though I am taxed on my disablity?

[dogband]

Now that we have been caught looking the other way while rogue bankers and lenders stole us blind...

Lets add to the national deficit,borrow from our children, and give Chinas economy a huge boost with the *** this rebate will purchase.

What a LOAD OF ***!!

Just another nail in the coffin of the ABSOLUTE WORST ADMINISTRATION in our history.

If it were not election year, and a s s h o l e republicans worried about huge losses, no one would be doing a *** thing.

And PS, thanks to all you GREEDY typical Americans, who bought way to much house than you could afford, and are now dragging my investments down. [unless you have illnesses and job losses, and valid reason] if loosing your house is simply due to YOUR GREED, then good enough for you.

Get off your butt and pull yourself up. Heres a news bulletin: ITS your job to take care of yourself, not the goverment and my tax money.

[williamfold]

more proof that congress and the administration are being run by incompetent fools.

[tylenol6]

FEDERAL RESERVE = FRAUD OF THE CENTURY......

It is ironic the people who want to give us the checks
(Bush & Congress) are the one''s who have caused our problem''s with bloated over spending and have voted for this disaster Iraq war. UNBELIEVALBLE!!!!!!! For those of you who do not understand what the Federal Reserve is, you need to google "Federal Reserve" and you will see it is a complete fraud on the american taxpayer''s. That is what Ron Paul is trying to tell the american people for those who will listen. Do yourself a favor and google RON PAUL....You will learn
so much what is happening with our economy and how to
protect yourself. We are in a recession already and
will be heading eventually in to a depression.
VOTE RON PAUL.

[lovegetpeace]

Hay williamfold,
Hate to say this but we (idiots) put the incompetent fools in office. Amigo, do you want another tax cut?

[lovegetpeace]

Folks,
When the NeoConversatives were in full control of congress beside the white house, 2 questions:
1) Why didn''t they lowered the taxes to zero, nada period?
2) Why, didn''t they make the Bush tax cuts of 2001 and 2003 permanent?

Any brave soul out there with an answer?

[mcvet]

more proof that congress and the administration are being run by incompetent fools.


--------------------------------------------------------------------------------

Posted by williamfold at 04:29 PM : Jan 25, 2008
+ report abuse

I will agree as far as the Republican''s are concerned but under no circumstances do we have a right to blame the Democrats for this mess. When the Republican''s took control of the Government there was a balanced budget and a surplus. When they started the "trickle down" track the Democrats told the LOUDLY not to go there...they went anyway. Sieg Heil Bush

[inventagod]

Just wondering if the CIA and Bu$h were behind the SocGen trading loss...

[mcvet]

And PS, thanks to all you GREEDY typical Americans, who bought way to much house than you could afford, and are now dragging my investments down. [unless you have illnesses and job losses, and valid reason] if loosing your house is simply due to YOUR GREED, then good enough for you.

Get off your butt and pull yourself up. Heres a news bulletin: ITS your job to take care of yourself, not the goverment and my tax money.


--------------------------------------------------------------------------------

Posted by dogband at 04:13 PM : Jan 25, 2008
+ report abuse

So let me see here.. you freaks haven''t blamed the failures of the Bush administration on enough American''s, NOW this is the fault of the average guy out there who went out and did what the lying piece of trash YOU put in office TOLD them to do? Man you are one sick Swastika Hugger.... or did you forget that it was Sir Lies-A-Lot and the Fascist party who took the control off these Finanical Company''s that allowed them to make these loans and these offers to people?? YOU fascist have NO honor what so ever... It''s always someone''s fault isn''t it... never the guy who created the mess huh? Sieg Heil Bush

[smirk5]

A few weeks ago, Bush was telling us the economy was strong. Now, he''s urging a stimulus bill. Even he knows he doesn''t have any credibility at this point.

[joyous88]

the conservative agenda in action,

and the mindless christians want to elect ANOTHER

evangelical President. four more years of these lies?

[redneck423]

hell i think you all should go to church

[lovegetpeace]

This is a paid commercial:

If you vote for me, I will give you a tax cut. Do not worry about your country. Come''on, muncho $$$ into your pocket. Last opportunity to take advantage of this great offer :-)

[missingamerica]

"were deeply unhappy that Pelosi agreed to jettison those proposals during the talks"?

Say what? Democrats are surprised that the lady who said:

"You can imagine my neighbors%u2019 reaction to all of this. And if they were poor and they were sleeping on my sidewalk, they would be arrested for loitering. But because they have ''Impeach Bush'' across their chest, it%u2019s the First Amendment.."

would go along with the Republicans?

C''mon...she''s like Clinton: Republican Lite.

[hungry1968]

You IDIOTS!

More tax cuts/rebates and you''''re pissed?

No wonder you''''re DEMOTOOLS!!!

Posted by badaxmofo at 05:16 PM : Jan 25, 2008




So you apparently think that plunging the nation even further into debt, for the hope that a fiscal gimmick is going to work, is a good plan?

How much do you think the economy is going to be boosted when everyone that is behind on their credit cards, mortgages, etc, pays those bills instead of buying new products -- you know the way this trick is supposed to work to boost the economy?

Estimates are 70% of the people are going to use it to pay off current debt or to save it. How does that help our economy?

[cfin5]

I hate to say it, but has anyone in Congress even read through the Bill to see what or if something BAD has been snuck into it? Which of our rights are we gonna lose this time for 1,200 measly dollars? Can''t imagine that not happening anymore. These 9th. Amendment breaking lawmakers have got the whole nation spooked up good.

[missingamerica]

More tax cuts/rebates and you''''re pissed?

No wonder you''''re DEMOTOOLS!!!

Posted by badaxmofo at 05:16 PM : Jan 25, 2008

What the hell good is a $600 tax rebate if I have to spend $1200 fixing my car because there is no Federal money to fix the pond-sized potholes in the eff''n highways?

[hungry1968]

hell i think you all should go to church

Posted by redneck423 at 05:10 PM : Jan 25, 2008



How is this problem solved by going to church?

Are we all supposed to pass around collection plates like beggars?

[goodgravy73]

SHAME ON WHOEVER CAME UP WITH THIS REBATE PROGRAM!!! You ALWAYS leave out the people who could truly use such a stimulus...we are no longer working but our social security and pensions DO NOT cover both food and medical needs. We are constantly making choices between the two and oh, how such a check would help. Again, SHAME ON YOU ALL WHO CAME UP WITH THIS JOKE.

[missingamerica]

...but our social security and pensions DO NOT cover both food and medical needs. We are constantly making choices between the two and oh, how such a check would help. Again, SHAME ON YOU ALL WHO CAME UP WITH THIS JOKE.

Posted by goodgravy73 at 05:31 PM : Jan 25, 2008

Ahhh, but a goodly portion of your income comes from "entitlement spending".

To Bush and "the right", that makes you subhuman.

[rowdytexan2]

To address the mortgage crisis, the package raises the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

Oh, so they want to allow more of the rich to buy new homes? Who the hell could afford a $729,750 home...especially if they have no job?

The easy way to take care of this crisis is to bring manufacturing back into the US and create jobs and put people to work so we can buy more Chinese krap and keep them happy so they won''t call in our debt!

Why don''t we get busy and build some electric cars, some solar panels for heating, put up wind turbines for every neighborhood. Then we can pile up all these oil dependent gas guzzlers and trade them to China for scrap and relieve some of that debt?

I''d a whole lot rather see the economy stimulated by good jobs instead of a tax rebate we''ll have to pay back next year.

The whole freaking bunch in Washington are USELESS!

[missingamerica]

Exactly - this is a F''''d up bipartisan plan - no one single party is to blame.

Posted by hungry1968 at 05:39 PM : Jan 25, 2008

You overlook the big hammer that Bush has; the Democrats are constrained to work within the parameters that he will NOT veto.

In the final analysis, Bush bears the most responsibility for the final outcome of both the "stimulus" package and the reason it is needed.

It still doesn''t let Pelosi off the hook for being so eager to avoid accusations of "It was too late to work because Pelosi stalled the bill!", but what do you expect.

[missingamerica]

You''re right about the jobs, Rowdy...this "stimulus" package is just putting air into a tire that still has nails in it.

[hungry1968]

I''''d a whole lot rather see the economy stimulated by good jobs instead of a tax rebate we''''ll have to pay back next year.

The whole freaking bunch in Washington are USELESS!

Posted by RowdyTexan2 at 05:40 PM : Jan 25, 2008





RIGHT ON BROTHER!!!!

VERY WELL SAID!!!

[lovegetpeace]

This is a paid commercial:

If you vote for me, I will give you a tax cut. Do not worry about your country. Believe me, I am not buying your vote. Come''''on, muncho $$$ into your pocket. Last opportunity to take advantage of this great special offer :-)

[jerr11]

We''ve been doing this stimulus package for a year now in Iraq.

Ask the sunni warlords. They''re all flushed with cash - US taxpayers cash.

That''s Gen Betrayus splurge strategy, IF YOU CAN"T BEAT THEM, PAY THEM.

Seems to be working. John McCain''s very proud of the "splurge," said it''s working, and of course it''s working. Who doesn''t want free cash.

Bush''s Iraq strategy:

Keep paying them greedy blackmailing warlords till January 2009, and then, blame the ensuing mayhem on the next president!

Brilliant!

[lovegetpeace]

Folks,

It is a pleasure to read so many NeoConservatives criticize the Democrats especially now after they have nothing even moderately good to say about their records/policies in the last couple of years.

Just to remind my reading audience, NeoConservatives, with their 2001 and 2003 Tax Cuts for the super riches, have given us the following benefits:
1) A 4.1 and counting Inflation Rate
2) A deep and counting recession
3) A 10 Trillions and counting Federal Debt.
4) A 5.0 and counting unemployment rate.
5) 2 un-subtained and counting wars.
6) A housing and counting meltdown
7) Record Corporation and counting Profits
8) Outsourced and counting millions of high paying professional jobs, we need and want, to oversea countries.
9) 48 millions and counting Americans without health insurance.
10) Almost last and counting failing grades from our education system compared to other much poorer countries.
11) The biggest embarrassing LIE since the birth of civilization with the story of the Weapons of Mass Destruction in Iraq.
12) The highest disrespect and counting around the world, even our closest allies will not send one more troop into Iraq and Afghanistan.

Why didn''t the NeoConservatives given us the 4th Great Depression so to destroy this American Empire once and for all. Maybe they forgot to make their Tax Cuts permanent when they controlled the congress beside the white house.

Congratulations NeoConservatives! Finally, "Mission Accomplished"

[lovegetpeace]

Hay jerr11,
Awesome point: Mess up the country with 2 un-subtained wars and blame it on the next president.

And the idiot Americans will surely believe the NeoConservatives after Bush leaves office.

[lovegetpeace]

Hay parrot2,
Good point: If was not for Nancy Pelosi, there would be no Tax Rebate for Americans, just a Tax Cut for businesses. The only reason the tax cut is still pending is because it is too much more borrowing.

[olebd]

Posted by RowdyTexan2 at 05:40 PM : Jan 25, 2008

Bravo!

Like the Hokey Pokey, what you said is what it''s all about :)

[lovegetpeace]

How many brand new Democratic Senators we are going to get in November? 8 or 12?