Posted on 01/17/2008 8:14:55 PM PST by NormsRevenge
WASHINGTON - United for urgent action, the White House and Congress raced toward emergency steps Thursday to rescue the national economy from a possible recession, including tax rebates of at least $300 a person — and maybe as much as $800. Federal Reserve Chairman Ben Bernanke endorsed the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy.
All the talk of rescue efforts failed to soothe Wall Street. The Dow Jones industrials plunged 306.95 points, underscoring deepening concern about the country's economic health.
The sudden scramble to take action came as fears mounted that a severe housing slump and a painful credit crisis could cause people to clamp down on their spending and businesses to put a lid on hiring, throwing the country into its first recession since 2001.
President Bush told congressional leaders privately he favors income tax rebates for people and tax breaks for businesses, officials said. Bush spoke with congressional leaders as House aides worked behind the scenes on an emergency package that could also include more money for food stamp recipients and the unemployed.
Aides to lawmakers involved in the talks said the White House is pressing for tax rebates of $800 for individuals and $1,600 for married couples. Lawmakers were likely to settle on a $500 rebate for individuals, said an aide involved in the talks, with details for couples and people with children still being negotiated.
The rebates would likely be limited to individuals with incomes of $85,000 or less and couples with incomes of $110,000 or less, the aide said, speaking on condition of anonymity because no final decisions had been made.
The president did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010, one official said. That would eliminate a potential stumbling block to swift action by Congress, since most Democrats oppose making the tax cuts permanent.
Bush planned to lay out his position Friday, but he wasn't expected to go into specifics. Press secretary Dana Perino said he would demand that any package be effective, simple and temporary.
Bernanke voiced his support for a stimulus package in an appearance before the House Budget Committee. He stressed that it must be temporary and must be implemented quickly — so that its economic effects could be felt as much as possible within the next 12 months. "Putting money into the hands of households and firms that would spend it in the near term" is a priority, he said.
Especially important is making sure a plan can put cash into the hands of poor people and the middle class, who are most likely to spend it right away, he said, though he added that research shows affluent people also spend some of their rebates.
He declined to endorse any particular approach, but he did say he preferred one that would not have a long-term adverse impact on the government's budget deficit.
Bush and congressional leaders from both parties consulted via conference call Thursday for about 30 minutes. Both sides basically were in agreement that they needed to cooperate to do something quickly, Perino said.
"There is reason to be hopeful when the president recognizes there is a problem in the country," House Speaker Nancy Pelosi, D-Calif., said afterward. She has talked of a package totaling $100 billion or more. House Republican leader John Boehner of Ohio spoke of a bill on the range of $100-150 billion.
The rush to swing behind a stimulus plan underscored the political imperative of responding to a growing concern about the possibility of recession.
Senior aides to House Democrats and Republicans said in addition to included tax rebates for individuals, the emerging measure would contain tax breaks for businesses investing in new equipment, increases in food stamps, and higher unemployment benefits. They spoke on condition of anonymity, since the talks are ongoing and lawmakers have promised not to reveal details.
Boehner said he was encouraged, and so did Majority Leader Steny Hoyer, D-Md. Hoyer said of his counterpart, "He indicated that he wants to work together to get something done."
Pelosi said she wanted legislation approved within a month and said the government must "spend the money, invest the resources, give the tax relief in a way that again injects demand into the economy, puts it in the hands of those who need it most and into the middle class ... so that we can create jobs."
But Boehner said: "For this bill to become law, it cannot become a Christmas tree" for Democrats to attach their programs. "It's hard to get anything moving within a year, and most of us believe that if we're going to have a stimulative effect at helping to revive what is becoming a sluggish economy, it needs to happen quickly."
Later, Boehner emerged from a meeting with Pelosi saying he had "productive" and "substantive" talks with her and other Democratic leaders.
Sen. Harry Reid, D-Nev., the majority leader, took issue with Bush's scheduling public remarks on the issue before a deal had been struck.
"The president's strategy threatens to unnecessarily politicize the inevitable bipartisan negotiations we will need to quickly enact legislation," Reid said.
The White House took issue with that — and called Reid's office shortly after the conference call to make clear that Bush on Friday would be spelling out his broad principles, not specific legislative proposals.
White House spokesman Tony Fratto said Bush does not believe a stimulus should be offset — or paid for — by any tax or spending changes elsewhere. Some deficit-hawk Democrats have pushed for one but it is not expected to be part of a package.
For now, Bernanke was hopeful the country could skirt a dangerous downturn. "We're not forecasting recession but, rather, at this point, slow growth," he told lawmakers. Still, the toll of the housing and credit debacles will be felt for some time, he added. "We believe we'll see below-trend growth certainly in 2008 and probably early into 2009, as well."
When asked about a stimulus package totaling around $100 billion, he said the impact could be "significant," not "window dressing."
Temporary equipment tax write-off provisions for businesses also could spur spending, which would help the economy, Bernanke said. But he warned: "I hope Congress can resist having a huge list of things" that would weigh down legislation and not help the economy in the short run.
The fragile state of the economy has gripped Wall Street and Main Street and is a rising concern among voters. The situation has galvanized politicians — including those vying to be the next president — and poses the biggest test to Bernanke, who took over the Fed nearly two years ago.
Said House Budget Committee Chairman John Spratt, D-S.C.: "It has become increasingly clear that our economy is slowing down, entering a slump if not a recession." Rep. Dan Lungren, R-Calif., likened a stimulus package to a "vitamin B-12 shot."
In his testimony, Bernanke again pledged to aggressively slash a key interest rate as needed to bolster the economy. Many economists believe the Fed will lower its key rate, now at 4.25 percent, by a bold half-percentage point at its next meeting on Jan. 30. Some critics on Wall Street and elsewhere have second-guessed Bernanke for not taking action sooner and more forcefully.
Ah’m gonna buy me a new TV! /s
Yeah, it's your money, but YOU don't get to keep it. It's theirs to distribute as they see fit...mostly to their pockets and those of the people they hope will vote for them.
The whole fake "stimuLUST" package is disgusting.
How about reducing the taxes on corporations and small business owners (ya know, the eeeeevil rich who employ people and pay salaries and wages). How about making the country more friendly to investment capital.
***The rebates would likely be limited to individuals with incomes of $85,000 or less and couples with incomes of $110,000 or less, ****
And those who pay NO taxes will feel left out so there must be something in it for them. That is what happened with the last tax rebate.
What is Hunters position on drilling in ANWAR?
http://www.2008electionprocon.org/energynationalparkoil.htm
This isn’t a tax rebate. They’re giving away cash to people with the hope that they’ll promptly run down to their local Wally World and blow it on a new Chinese-made DVD player. Gotta keep the Merry-go-Round rollin’.
The reason I support this is because it makes a clear and obvious example of the Republicans philosophical tax mantra: money is better spent in the hands of taxpayers and actually increases government coffers in the long run.
What if they cut gasoline taxes by 50%? It’s not helping that fuel prices are higher at the same time we’re having a slowdown. The only problem with that is they would cut the taxes, and then later reinstitute them.
There are too many people who have lost their jobs and have no money. Their jobs went overseas, and they need the money most of all. The fat cats can wait.
I would probably use it to pay taxes or bills. Maybe they ought to just give us fema gift cards:’)
Don’t worry, they banned the light bulb, and it will be replaced buy a new $500 one. So, you can buy 2 of them and save the polar bear and fight globle warming, See?
Reduce federal taxes to 10%.
Maybe they can just give everyone a hundred, million, billion dollars. That way, nobody will every be poor again.
If you can afford the new, federally mandated $500 light bulbs, you get no rebate. If you can’t, you get a $0.50 rebate for candles.
I guess the Feds will wait til we are driving over the cliff before taking action.
Winos? Dope addicts? Gamblers? Sub-prime borrowers?
Tax his land,
Tax his wage,
Tax his bed in which he lays.
Tax his tractor,
Tax his mule,
Teach him taxes is the rule.
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirts,
Tax his work,
Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he tries to think.
Tax his booze,
Tax his beers,
If he cries,
Tax his tears.
Tax his bills,
Tax his gas,
Tax his notes,
Tax his cash.
Tax him good and let him know
That after taxes, he has no dough.
If he hollers,
Tax him more,
Tax hi m until he’s good and sore.
Tax his coffin,
Tax his grave,
Tax the sod in which he lays.
Put these words upon his tomb,
‘Taxes drove me to my doom!’
And when he’s gone,
We won’t relax,
We’ll still be after the inheritance TAX!!
Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Perm it Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax),
IRS Penalties (tax on top of tax),
Liquor Tax,
Luxury Tax,
Marriage License Tax,
Medicare Tax,
Property Tax,
Real Estate Tax,
Service charge taxes,
Social Security Tax,
Road Usage Tax (Truckers),
Sales Taxes,
Recreational Vehicle Tax,
School Tax,
State Income Tax,
State Unemployment Tax (SUTA),
Telephone Federal Excise Tax,
Telephone Federal Universal Service Fe e Tax,
Telephone Federal, State and Local Su rcharge Tax,
Telephone Minimum Usage Su rcharge Tax,
Telephone Recurring and Non-recurring Charges Tax,
Telephone State and Local Tax,
Telephone Usage Charge Tax,
Utility Tax,
Vehicle License Registration Tax,
Vehicle Sales Tax,
Watercraft Registration Tax,
Well Permit Tax,
Workers Compensation Tax.
Not one of these taxes existed 100 years ago,
and our nation was the most prosperous in the
world.
We had absolutely no national debt, had the
largest middle class in the world, and Mom stayed
home to raise the kids.
What happened? Can you spell ‘politicians!’
And I still have to ‘press
1’ for English.
What the heck happened?????
Answer
SOCIALISM
Now you’re talkin’ real money. Gimme, gimme! /s
Where do I sign up? I want to give it all to Fred08!
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