Bush Unveils $674 Billion Economic Plan

Reuters via Yahoo ^ | 1/7/03

[B-bone]

Bush Unveils $674 Billion Economic Plan

CHICAGO (Reuters) - President Bush (news - web sites) on Tuesday proposed a $674 billion boost for a struggling U.S. economy with measures including an end to taxes that shareholders pay on dividends -- a move denounced by Democrats as a politically motivated windfall for the rich.

"I will ask members of both parties to work with me to secure our economic future. We cannot be satisfied until every part of our economy is healthy and vigorous," Bush said in a speech to the Economic Club of Chicago.

The "growth and jobs" package aims to kick-start the U.S. economy by encouraging consumer spending, promoting investment that will create jobs and helping the unemployed.

It will include the acceleration of across-the-board rate cuts, immediate tax relief for married couples and families with children, and bigger incentives for small businesses to invest in new equipment.

In all the White House says it will give 92 million taxpayers an average tax cut of $1,083 this year. Up to 35 million people who get income from dividends could benefit.

[concerned about politics]

WHEN WILL THE MEDIA AND THE POLITICIANS CALL HER ON THESE LIES???

The Democrats were in power for 40+ years. Their base is still the dysfunctional, the homeless or those stuffed in housing complexes, the uneducated, the diseased.
Who said the Democrats know anything about economics? When are they going to prove it? 40+ years is not long enough?
Wanna live like a democrat? - vote democrat.
Wanna live like a Republican? - vote Republican.

[Wphile]

Since the largest expenditures of most states governments is education...and most states are running deficits...lets give an additional $400.00 tax break to the families that are actually using the education system.

Makes sense to me.( /sar)

Say what? The $400 tax break is a FEDERAL tax not a state tax. The states get very little money from the Federal government - about 9% of a school's budget comes from the Feds.

Maybe the States are running deficits because they are spending too much. Like California where spending has gone up 30% in the last two years. And maybe, the deficits are there because the economy is weak. Weak economy, less tax revenue. Weak economy, less tax revenue, and increased spending - that's why the state's are in the mess they are.

[YaYa123]

Begala was saying "everyone pays payroll taxes" so, a payroll tax holiday, he said, is the only fair way to dole out a tax break to everyone. He's wrong...retired people don't pay payroll taxes. Hilarious that Begala would stupidly deny that huge voting block of retired people, a tax break. Even funnier because his recommendation would take money away from the untouchable social security lock box, that same sacred box democrats have vowed never to disturb.

[meyer]

Well, actually there are lots of people who don't pay any payroll taxes either. It's a little thing called the Earned Income Tax Credit and it is a refundable credit for people earning less than $30,000 but don't pay any income tax so they are refunded a portion of their payroll taxes through the tax credit...ie., they get a check even though they didn't pay any income taxes.

The earned income tax credit is "welfare lite". It is better than paying someone to stay home, but not much. It still survives on the liberal/socialist premise that one economic class should carry another. The free ride syndrome lives on.

[RobFromGa]

And when people individually see that they are getting accelerated cuts

Exactly! And with the retroactive tax cut, everyone will have one complete tax year under their belt before the 2004 election with a second almost completed. And, a roaring back economy...

[rwfromkansas]

Right. It would be accurate to say tax-deferred, but that is not what they are saying. Only Roth IRA's are completely non-taxed.

[muawiyah]

To maintain an equitible tax situation, the corporate income tax should be abolished. That would benefit the broad masses who own stock through their 401(k) plans (presuming corporations would then distribute earnings through dividends to stock).

The special tax rate for capital gains should be abolished as well. Simply charge capital gains at the same rates charged to personal income. In this way you get a piece of the tax reduction and so do I. Otherwise, you get a reduction and I don't.

[iopscusa]

Well the only thing I can say is "cut the taxes asap and the spending battle will come soon enough"...at least we can hope to start gaining ground against the free loaders and corrupt vote buyers!

[Wphile]

Oh I know. It's a total scam and you wouldn't believe the people that benefit from it - many illegal immigrants do!

The tax code is a total shambles and should be totally scrapped. I'm kind of hoping that W jumps on the flat tax or national sales tax bandwagon before 2004. It would be so great to scrap the whole darn thing.

[rwfromkansas]

He simply said last week that people like to turn this into class warfare and that he cares about all people. Today, he said it is relief for all people, counteracting Dem claims. That said, I would love to see him snap his finger and a pie chart appears to show how it does affect all people....:)

[ohioWfan]

It's scheduled to be shown on CSpan at 8:00 tonight.

Watch it!

[muawiyah]

Those dividends are taxed at personal income tax rates. However, that income has been deferred and any earnings on it accrue tax free until withdrawn.

Technically speaking, within the current tax year Pelosi is correct.

[areafiftyone]

YOU BET I WILL! :-)

[freeper12]

>>Well the only thing I can say is "cut the taxes asap and the spending battle will come soon enough"...at least we can hope to start gaining ground against the free loaders and corrupt vote buyers!


That'd be nice, but when has it ever happened? With republicans in all three branches, they have no excuses not to reign in out of control spending and federal debt...talk is cheap...unfortunately, no one is even talking about it any more.

[Wphile]

8:00 p.m. tonight. I'll be watching.

I also loved the part about taking the expensing allowance (Section 179) from $25,000 to $75,000! Ha, he went for the jugular on that one. God, I hope this all passes.

[rwfromkansas]

If I was a news reporter, I would simply have ready to copy-and-paste that sentence into every article about tax cuts....you know it would be there somewhere...lol.

[The Wizard]

Great speach, great plan...and how can you be sure

By the squeeling of the democrats

[GretchenEE]

Hi Yaya, long time no see.

"Big gamble" says Ellis, "is most of the benefits are going to be in the off years." (Whatever that means).

Perhaps Ellis means most of the benefits will come during non-election years, and there is that pesky issue of voters who forget to be grateful to those whose hands blessed their coffers, so the "gamble" is political for MOC. If so, the speaker is entirely missing the point: how to stimulate the economy, not to assure re-election of Congress members!

If so, how could there be a more blatant example of money tied to votes?

Just can't help but remember the words of one of our founding fathers (Jefferson?, and I'm summarizing poorly) who intoned the warning that once the people figure out they can vote themselves money out of the public treasury, there will be big trouble.

[concerned about politics]

Technically speaking, within the current tax year Pelosi is correct.

Unless you take it out early to pay your school taxes. Then you're really screwed. LOL

[ohioWfan]

Right......most people don't listen to political speeches right or left, but they DO pay attention to their paychecks. They'll see who's right here, and it sure ain't the RATS!