WHITE SULPHUR SPRINGS, W., Virginia (Reuters) - U.S. President George W. Bush said on Friday he was confident in the long-term strength of the U.S. economy, but urged lawmakers to act swiftly on a stimulus plan he and others hope will help stave off a possible recession.
By Jeremy Pelofsky
WHITE SULPHUR SPRINGS, W., Virginia (Reuters) - U.S. President George W. Bush said on Friday he was confident in the long-term strength of the U.S. economy, but urged lawmakers to act swiftly on a stimulus plan he and others hope will help stave off a possible recession.
"I strongly believe it would be a mistake to delay or derail this bill," Bush told his fellow Republicans from the House of Representatives who are attending an annual retreat.
He said the economy's underpinnings were solid but added it needed a temporary boost that would be provided by the election-year package of tax breaks for businesses and government rebates to individuals and families.
!ADVERTISEMENT!Bush and leaders in the Democratic-led House on Thursday unveiled a package of about $150 billion in tax rebates and business investment tax breaks aimed at stimulating consumer and business spending and giving a boost to the economy that has been suffering from high oil prices, a housing market slump and a subprime mortgage crisis.
"It's a sound package. It makes a lot of sense. It's needed and you need to pass it as quickly as possible to get money in the hands of the people who are going to help this economy stay strong," Bush said.
The package must first pass the House before it heads to the Senate, where it will be subject to changes. The House is expected to act quickly on the deal negotiated by House Speaker Nancy Pelosi, a California Democrat; House Minority Leader John Boehner, an Ohio Republican, and Treasury Secretary Henry Paulson.
SENATE MAY DO SOME TINKERING
Boehner told reporters that the House would act quickly on the plan, but expressed concern that momentum could slow in the Senate.
"The Senate is another body. They've got their own issues that they have to deal with. They're going to speak on this, I just hope they do it quickly so that we can get it to the president's desk," Boehner told reporters.
Senate Democrats have said they hope to add a temporary extension of unemployment insurance benefits beyond the 26 weeks normally offered by states and other spending that could help low-income people.
In Washington, Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, discussed the stimulus plan at a meeting with Paulson. He told reporters afterward that the Treasury secretary would resist efforts to add on to the package.
"I don't think he's enthusiastic about that," Dodd said.
The package includes government tax rebates of up to $600 for individuals and $1,200 for married couples, plus $300 per child. The rebates phase out for individuals with taxable incomes above $75,000 and for couples with taxable incomes above $150,000. Checks could be sent out as early as May.
The package includes tax provisions allowing businesses to more quickly write off new investments in plant and equipment.
Although Democrats gave up on efforts to get unemployment insurance benefits and money for food stamps into the package, Pelosi told a National Press Club audience in Washington on Friday, that the stimulus package was aimed at helping middle- and low-income Americans.
"This package that we put forth yesterday was a drastic shift from tax cuts for the wealthiest people in our country to tax cuts for the middle class and tax cuts for the working Americans," she said.
Senate Majority Leader Harry Reid, a Nevada Democrat, has said he does not see the package getting bogged down in the Senate and would push to land the legislation on Bush's desk by mid-February.
