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.

[stddating]

I don''''t know who you think he''''s buying votes for. He already has filled out his two terms. Unless you think he''''s trying to sew-up the deal for a Republican canidate.

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[engineer1503]

G. Bush says "In six months I''ll send you fifty cents, you may go buy some ice cream. By the way, I borrowed the quarter from the Saudis and Chinese. We''ll send you the bill in a year or two. And we''re charging you interest."

G. Bush, running the USA just like did when he was a Texas CEO. Oh wait, didn''t that oil company go bankrupt?

[homespunlady]

Personally I DON''T have a dog in this race.

I DIDN''T get the LAST "rebate" of STOLEN from the nation''s Treasury money and I WON''T be seeing the next.

I''m NOT whining about it. I''m PITYING the IDIOTS that Can''t seem to UNDERSTAND BASIC Economics!

MY ONLY REGRET is my "idealism" and "faith" in our Constitution which is now DESTROYED.

KIDS DON''T believe that joining the MILITARY is "patriotic" like I did.

I LEARNED the HARD way it''s FAR FROM that!!

- It''s just being a "PATSY" and when you''re DISABLED and a "useless eater" as some here believe and COMPLAIN about - the PAINFUL TRUTH will be all you have.

[homespunlady]

pepperwood2

So you''re saying that the poor should **** and go quietly FURTHER down the road into ABJECT poverty while the TINY MINORITY at the TOP SQUEEZES every LAST DOLLAR of wealth from this nation.

THEY ALREADY have HOARDED MOST of it and have GIVEN AWAY the REST to their FOREIGN BUDDIES - Like the BIN LADEN FAMILY of BILLIONAIRES!!!

DID NOBODY LISTEN to Bernacke - the FED Chairman DESCRIBE the "CRISIS"????

WE HAVE a CASH FLOW PROBLEM!!!!

That means THE SEWER STOPPAGE of money FLOWING TO THE TOP of the wealth PILE and NOT FLOWING DOWN to EVERYONE ELSE has reached CRITICAL MASS and is about to EXPLODE in either a WORLD-WIDE FINANCIAL CRISIS or less likely from all the "dumbed down" of our Nation of IDIOTS - a NEW Revolution that could echo throughout a LOT of other nations in similar straights!!!!

This PLOY of BORROWING MORE to PACIFY the DESPERATE will NOT WORK!!

It''s a "temporary" measure to BUY TIME in order to figure out HOW to avoid the upcoming DISASTER!

We''re on a set of tracks and the TRAIN is about to HIT this nation and all the MSM controlled DUMB BUTT peasants can do is finger point at each other because they''re TOO DUMB to GET OFF THE TRACKS!

[pepperwood2]

Mr. Gumpa you wrote:

Add another few billion to the deficit he has already borrowed from China. Maybe a few moron''''s like you will conveniently forget who got us into this financial mess come election time! We all know why we are getting this tax break! Bush isn''''t even clever enough to cover up his buying votes!

Dear Sir - America is in debt because, as Senator Byrd said "There is too much consuming going on out dere". Most of us are in debt because of our Wants & Give me''s. Want this & Give me that. Even if we don''t need it your friends in congress, over the years, have made it easier to get those things. How you ask? Don''t be a complete imbecile, if you can help it, credit cards, lower mortage rates, refinancing, a new car in every garage, new home on every lot, chicken in every pot. Your American Way has cost us dearly.

Balance the budget, huge deficits, etc. what a joke. The so called surplus as you imbeciles called it was credited by the huge Clinton tax increases on your wages, benefits, tips, of the lower working classes.

The wastes in Medicare, pork barrel projects, education, welfare, etc were never addressed. You don''t create a surplus by the raising taxes on the working class.

Downsize, cut your spending, reduce your wants, & giveme''s, and you the consumer & this Country will be better off.

[standlee5]

They could also stop the flow of money streaming into Mexico from illegal workers. Keep the money in the US. A worker has resident alien status works all year deducts six kids and a "wife" that actually live in Mexico then sends the $5K tax refund straight down to Mexico.

[standlee5]

This is so stupid. If they want economic stimulus cut taxes. Straight accross the board tax cut. Business and Individual. Done. Congress is going to slice and dice this and it''ll be a year before anything comes of it if anything does come of it.

[joegene2001]

THANK YOU PRESIDENT BUSH. THIS REBATE WAS AN EXCELLANT IDEA...............................

[Con Mohrat]

(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.
==========

More hogwash. It''s January. Checks go out in May. Where''s the hurry?
Congress, wait until after the Easter recess to look at this, AFTER working on the Child Healthcare program the rogue vetoed.

[slim1h2o]

3 Tax alcohol, tobacco, firearms, gambling, and marijuana
Posted by brianbwb,

I like all your ideas, but they already tax the h3ll alcohol, tobacco. Firearms? Not sure of about the tax rate on those. Gambling? Already taxed at the 40% to 60% levels now. And, marijuana, well we''d have to legalize that, and the alcohol, tobacco, and Big Pharma. won''t allow that to happen.

And too,,I''d like to see some provisions that would mandate that Doc''s do their jobs, and treat their patients, or release them to a Doc that can. In other words,, a guarantee to us patients that they are doing their jobs.