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.

[Rockitz]

He's still implying that the government can control the economy through it's actions and mentions nothing of the delay of impact to the economy of any policy enactments. He needs to establish the fact that any policy enacted now will take time (possibly years) to work through the economy. The public is under the false assumption that action today will translate to almost immediate relief (within months). Accordingly, if there's no turnaround by next year, he will be blamed and could be in danger of losing his reelection bid.

[america-rules]

"Has anyone expressed any concern about the size of the deficit this all portends, or is this thread supply side central and/or deficits don't matter no matter how large city?"

Deficits are actually good ! They keep a check on spending better than anything. If we didn't have deficits in the 80's the Rats would have spent 500 Billion more !

[Torie]

You have a point that is not wholly without merit, but it is nevertheless a depressing point to the extent meritorious, ie the only way to leash the leviathan is through irresponsible fiscal policy. An alternative is to elect Dem presidents and Pubbie Congresses, but then fiscal policy is not the alpha and omega. There are other issues out there.

[Torie]

You have a point that is not wholly without merit, but it is nevertheless a depressing point to the extent meritorious, ie the only way to leash the leviathan is through irresponsible fiscal policy. An alternative is to elect Dem presidents and Pubbie Congresses, but then fiscal policy is not the alpha and omega. There are other issues out there.

[ImphClinton]

It is still cutting the tar at the wrong place. Why is dividends better than interest. Banks also pay taxes. Thus interest income is often taxed twice as well. I'm sure there are many other types of double taxitation.

Be honest and cut it at the Corporate level to encourage corporate growth and honesty in the stock market.