WASHINGTON -- President Bush outlined the broad details of a roughly $150 billion economic-growth package Friday, seeking Congress' help to provide a jolt intended to stimulate consumer spending and spur the creation of as many as 500,000 jobs.
Bush said any stimulus plan should be big enough to make a difference in the world's largest economy, and he proposed that the cost amount to about 1 percent of the U.S. economy. He called for tax rebates for consumers and tax credits and cuts for businesses to entice them to spend more money and hire more workers.
"Letting Americans keep more of their own money should increase consumer spending and lift our economy at a time when people otherwise might spend less," the president said, declining to say how big a rebate he plans to offer.
Although Bush and leading Democrats in Congress agree on the broad categories of a stimulus plan, they're apart on the details.
Democrats seek an income cap of $85,000 for individual filers and $115,000 for joint filers. But that may change as lawmakers from high cost-of-living states such as New York and California push for higher thresholds. They're also looking for ways to get rebates into the hands of the poorest Americans on the presumption that these people are most likely to spend their rebates immediately.
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The Bush administration is thought to favor rebates that involve temporarily eliminating taxes on the first $8,000 of individual income and $16,000 of family income. The liberal Center on Budget and Policy Priorities argues that 40 percent of tax filers, those with incomes of $25,000 to $41,000, could be bypassed or receive only partial relief under this approach
After the president's address, Treasury Secretary Henry Paulson skirted details and said the size and nature of the rebate must be worked out in bipartisan fashion with Congress. Congressional leaders from both parties are scheduled to meet Tuesday afternoon with Bush.
Federal Reserve Chairman Ben Bernanke said Thursday that it could be at least two months before the Internal Revenue Service could send all taxpayers refunds. Because Congress didn't pass important tax legislation until late last year, regular tax refunds already were expected to be mailed out almost a month later than usual.
If it takes 30 days to pass the stimulus package, it might be mid-May at the earliest before consumers could receive their checks.
