Bush, Congress On Same Track With Fiscal Stimulus

President Bush called for an economic stimulus package that could be worth as much as $145 billion and provide tax rebates for American taxpayers, but he warned Congress not to load up the legislation with excessive spending.

Bush, flanked by Vice President Cheney and economic advisers at the White House Friday morning made a pitch for small business tax breaks as well, acknowledging that small businesses and consumers are hurting during the economic downturn.

The fiscal stimulus "must be big enough to make a difference in an economy as large and as dynamic as ours," Bush said. "It must be built on broad-based tax relief that will directly affect economic growth, and not the kind of spending projects that would have no immediate impact on our economy."

The $145 billion would amount to about 1 percent of the gross domestic product, Bush said. He also made a pitch for making his 2001 tax cuts permanent, and called on Congress to begin debate on those much more controversial tax cuts after the fiscal stimulus package takes effect.

Republicans in Congress have agreed to hold off on the debate over the 2001 tax cuts until after the economic package is approved, while Democrats have agreed to back off of their "pay as you go" rules that would require spending cuts or tax increases.

Bush did not mention extension of unemployment insurance or food stamps, something that has become a Democratic priority in discussions about the fiscal stimulus.

Bush seemed optimistic the economic deal could happen quickly, echoing the unusual bipartisan optimism prevailing on Capitol Hill these days.

“I believe there is enough consensus that we can come up with a package that has broad bipartisan support," Bush said.