Bush Talks Taxes

President Bush urged the Senate on Saturday to ease the pain of a stumbling economy by quickly adopting his plan for $1.6 trillion in tax cuts over a decade.

"We have been hearing too much troubling economic news," Bush said in his weekly radio address. "It is only common sense to give our economy a boost during a slowdown."

He pointed to falling stock market prices, higher energy prices, layoffs and slowing retail sales.

"It is time for the United States Congress to give Americans some good economic news: tax relief for everyone who pays income taxes," he said.

The Republican-controlled House earlier this month passed Bush's proposal, mostly along party lines. GOP leaders in the evenly split Senate have said the president lacks the votes now to pass the cut. Also, some moderate Republicans consider the cut too expensive and overly tilted toward the rich.

"The Senate should act quickly on my plan for two good reasons," Bush said. "First, tax relief is good news for our economy which needs some good news. Second, my tax reform plan will treat everybody fairly."

Democrats, in their radio address, insisted that Bush's overall tax approach would unfairly reward the rich while doing little for the poor or middle class.

Rep. Robert Menendez, D-N.J., contended that Bush's response to signs of trouble in the economy is to abandon fiscal restraint.

"One part of his plan is to allow children of billionaires to receive tax free inheritances," Menendez said. "Another would give an average tax cut of $28,000 to those making over $1.1 million a year."

"In contrast, most families who depend on a paycheck not an inheritance to support their families would receive only several hundred dollars per year or less," Menendez said. "And many lower and middle income families would receive nothing not a dime."

"Worse yet, by committing all the surplus to pay for these lopsided tax cuts, there is no money left to invest in our nation's priorities," Menendez said.

He said Democrats are ready to work with Republicans on what he called a fairer plan. But he added: "Bipartisanship is more than just smiles and photo-ops. It's real negotiations followed by action."

Also Saturday, White House budget director Mitch Daniels responded to Democratic complaints about the president's tax plan.

"We still think it's right-sized. But he's open and listening to Congress about ways in which it might be modified," he said on CNN.