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US Economic Initiative
January 2008
U.S. President Bush calls for $150 billion aid package to support US economy amid recession fears
On 18 / 19 January President Bush called for an economic aid package of around 1% of US gross domestic product , put ting it between $140 and 150 billion, to avert a slide into recession. The US President and Treasury Secretary Paulson indicated they would work with the Democratic-controlled Congress to get a bipartisan relief package introduced as soon as possible.
Bush favours tax rebates for American families and incentives for business to provide what he calls a shot in the arm to keep a fundamentally strong economy healthy . The Democrats have indicated they can agree on
one- time tax rebates but want different priorities for the rest of the package, favouring increased spending on food stamps, unemployment benefit and infrastructure.
The biggest proportion of the economic package would be targeted at individual taxpayers, which it is hoped could stimulate the economy and create jobs. Bush and Paulson don t support the idea of giving cash to people who do not earn enough to pay federal income taxes. The Democrats on the
other hand want any stimulus package to help the low paid who they say are hardest hit by the weakened economy.
Source: IBEC US Monitor