Posted on 01/18/2008 12:50:39 PM PST by 2ndDivisionVet
President George W. Bush's administration is considering an individual tax rebate of up to 800 dollars as a short term measure to help boost the sagging US economy, a media report said Friday. The Republican leader was to unveil a fiscal stimulus plan later Friday, amid grim economic news that has united lawmakers and the Federal Reserve chief on the need to revive flagging US growth.
The White House has said Bush would propose policies, not dollar amounts, because details of the plan must be hammered out with the Democratic-controlled Congress.
"Privately, the White House has discussed its support for a tax rebate of as much as 800 dollars for individual taxpayers, more than double the 300 dollar rebate featured in a 2001 effort to spur economic growth," the Wall Street Journal said.
In a key concession to Democrats, the US administration appeared willing to accept stimulus legislation that does not include an extension of Bush's tax cuts, the Journal said.
Congressional Democrats, meanwhile, are suggesting they would be willing to suspend their own budget rules and accept a tax break without first figuring out how to pay for it, the Journal said.
House Speaker Nancy Pelosi said Congress would have an economy-boosting package ready by January 28, when Bush delivers his annual agenda-shaping State of the Union speech.
The two sides have been jolted into a bipartisan mood by the latest round of weak economic news and a downward spiral on Wall Street that prompted Fed chairman Ben Bernanke and others to talk up the need for swift action.
Bush and US Treasury Secretary Henry Paulson held a conference call Thursday with top lawmakers from both parties to discuss the issue, a spokesman said.
"Tomorrow, he'll call for effective, temporary, growth measures and will lay out his principles for what an effective approach should be," said spokesman Tony Fratto.
In remarks expected around noon (1700 GMT), the US president will "let the American people know that he does believe that short-term temporary measures are needed to help the economy through this period," said the spokesman.
That’d help us out of a pinch. The money would definitely go back into the economy as we have to eat and have clothes to wear.
Hold on to your wallets! The Democrats are CERTAIN to buy low-income votes with a handout of YOUR money to non-taxpayers, I guarantee it.
He could have declared 2007 as the start of no more federal tax year.
They are transferring $100 billion from private debt to public debt. Who knows if this will be a net plus.
$800 won’t off-set what Ed Rendell took from me by increasing the state income tax. But I’ll take it!
Like trying to put out the So Cal fires this year by peeing on it.
Lemme get this straight: he’s gonna give us some of our money* back so that we can go out and spend it and the gubmint will tax it and then the people that work at the places we took our money will get their paychecks and then go out and spend that money and the gubmint will tax it (and so on) and then everything will be ok.
Sounds good to me, where do I sign up?
It won't do a thing for the economy. The money was taken out and will be put back in. No net increase in wealth -- no effect. Zip, zero, nada.
Take a look back at spending increases when the 2001 rebate came out; they barely even registered. Voodoo economics, indeed.
Is this a “pre-bate” like the last one was?
Election year.
Does anyone get the idea that somewhere around 2005 the real Bush was kidnapped and an imposter has been running the country ever since?
If you give everybody $800 they will spend it on some item with a high probability that it was made in China. Thus we will be pouring even more money into China.
Why don’t we just ask China for foreign aid?
Cash back to the people, so they can spend it on Chinese made goods at Wally World.
This “rebate” give away will cause more debt. To finance it, the Chinese will give us more loans, and we will also print more money, leading to further currency devaluation and inflation.
Sounds like a splendid idea.
For one thing, this is not a tax cut -- it is probably a "prebate" that will have to be applied to a taxpayer's 2009 income tax return (i.e., their 2009 refund will be reduced by $800 or their income tax liability will increase by $800).
Also, I'm not sure this economy really needs a cash infusion like this. What we really need is: (1) a serious day of reckoning with regard to Federal entitlement spending; and (2) some way of dealing with the financial ruin brought about by our disastrous nation-building campaign in Iraq.
$800 will get me a cheap flat panel TV. Still not as good as the Katrina victim handouts.
that would pay off about half my credit cards if it is in fact an $800 check.
Well....maybe it’ll help us pay our income taxes.....IF we even get it.
If that money had not been spent in Iraq, it surely would have been spent elsewhere.
Even when it's a direct transfer of YOUR cash to someone else that paid NOTHING, Democrats will get away with calling it a "rebate".
Sorta like an automaker's rebate where they give you cash and you didn't even buy a car!
Is this a great country or what?
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