NYC-WTC_000230669

NYC 9/11 Public Portal Document

NLWSUAV. THURSDAY, OCTOBER 4. 2001

Bush pushes plan to spark economy By James Toedtman ClIlFlr aCONOMlC COBRBSTOMjiNT Washington — President George W. Bush end congression­ al leaders pledged yesterday, to develop a S50-hillion to S75-Bjilion package of tax cute end new spending to jump-sLert the nation’s economy, which hag stalled since the Sept, 11 terrorist attacks. a meeting with New York business leaders, Bush an­ nounced his support for a plan coating $60 billion to $75 bib lion that would be aimed at encouraging hueitieae and con­ sumer spending while assisting those who need health and financial benefits after the ottachs, which left nearly 6,000 dead. Congressional Democreta said they wanted to limit the cost to $50 billion- "We're coining together on a plan that I believe needs to ' get passed a .a quickly as possible,* Bush said. "We’ve now got a reason to do ,.. what it takes to make sure this economy geta growiag so people can find work.". Congressionel leaders said they were optimisLic the pack­ age co^d be produced, and they continued their own fisaess- ment of the economy in a private meeUng with Federal Re­ serve Chairman AJan Greenspan and former Treasury Secre­ tary Robert Rubin. Bipartisanship prevailed as the Senate Finance Commit­ tee began discussing specific options with Treasury Secre­ tary Paul O'Neill. The stimulus plan outlined by Bush was csaentially the same as the plan being discussed by Senate Majority L^der Tom Daschle (D-S.D.) and Senate Finance Committee Chair­ man Max Baucus (D-Mont.). i The package’s three components include; . ' • Tax incentives for congumers; rebating payroll taxes or advancing to next year the marginal rate cuts set for 2004. • Tax incentives for bualnefis; accelerating depreciation schedules, calculating a portion of new investments as ex­ penses that are not taxed or cresting investment tas credits. • Aid for workers and bu5inea5e5 affected hy the attacki; extending unemploynieiit benefits ar creating job training funds. O'Neill, who a aid he hoped Anni agreement could be reached in four weeks, also proposed a new system of "nation­ al emergency grante’’fcr states tc use as they wished He did not mention a price tag. While economists as well as politicians have questioned the adequacy of a $60’billion BTirnulent in a SlO-trUlion econ­ omy which most believe has slipped into s recession, Bush and eoagreaaionai lefiders took their lead from Greenspan, who has urged them to take their time and to limit any eco­ nomic stimulus effort to $100 billion total, 1 percent of the gross domestic product. By compariaon, earlier this year Con- nesa approved $36 billion in tax rebates, which have been delivered. ONeth faced the sharpest criticism from ccnservativR Re- . . publican senators who think the administration should concen­ trate on tax breaks, not spending. Sen. Don Nickles criticized the administration for even considering a mini- mum-wage increase, which O’Neill said remained an option. Already, Congreas has approved $40 billion for cleanup . and $15 billion in aid and loan guarantees for the aviation m- duatry. , ’ The stock markel reacted poBitively w the idea of a stimu­ lus package, with the Dow Jones industrial average dosing , above 9.00C for the first time since the attacks. The list of new proposals, though, threatens to exolode. House Democratic Leader Dick Gephardt of Missouri has proposed new protection for the nation’s nuclear power plante, and on Tuesday Sen. Hillary Rodham Clinton 1 iD-N.Y.) raised a series of projects involving water, energy and trarsportation in the name of "HomBland Security.” 1 Sen. Chuck Graaaiey (R-Iowa) listed nine tax pruposak, and Sen. Prank Murkowski (R-Alagka) proposed government assis­ tance for construction of a 3,000-niile natiral-gas pipeline from Alaska to Chicago. As the list of proposals grew. OWiJJ renunded the sena­ tors, “If we ‘Chriatmaa tree' thia effort or use it to advance partisan agendas, then I think it’s doomed .t No legislative product 19 better than a bad legialaijve-product* ;

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NYC-WTC_OOO23O669