Bush Prepares To Unveil Economic Stimulus Plan

by Mike Godfrey, Tax-News.com, Washington

06 January 2003

President Bush is set tomorrow to unveil his plans for stimulating the US economy in 2003.

Amid a tense atmosphere, exacerbated by leaks from the White House concerning the uncertainty felt by the President's new economic team over the reception that his plans are likely to receive from Democrats, consensus appears to have been reached - in the media at least - over the proposals likely to appear in Tuesday's speech.

According to the Wall Street Journal last week:

'The plan will likely have three main parts: reducing taxes on corporate dividends, accelerating the date by which other tax cuts become effective and providing businesses with bigger write-downs of equipment purchases. Most of the gains from the changes will benefit higher-income earners and businesses.'

However, in order to appease Democrat objectors, Bush is thought to be considering leaving out a recommendation to speed the top rate cut for individual taxpayers, and is also said to be looking to structure his tax cutting program in such a way as to offer benefits to average taxpayers.

Among the possibilities, according to the WSJ, are a revamp of the child tax credit, or cash rebates for low income taxpayers.

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