The Bush Stimulus and Tax Rebate Package

The Bush stimulus and tax rebate package: There are serious worries that the American economy may already be in a recession pattern. Today, according to a Bloomberg.com article, President Bush proposed a $150 billion dollar stimulus plan. This plan is intended by Bush to be a temporary boost for the economy, rather than a permanent tax cut. The Bloomberg article noted that Bush believes the stimulus package would be about one percent of the gross domestic product.

It is believed that the stimulus plan would put roughly $800 immediately back in the pockets of American taxpayers. Bush hopes this money will be spent in order to boost the economy.

Reuters.com reports that Federal Reserve Chairman Ben Bernake supports such a stimulus package. According to the Reuters.com piece, "Bernake told a congressional commission he supported the idea of a short-term fiscal stimulus measure." In fact, as Reuters reports, a day before President Bush proposed his plan, Chairman Bernake stated that a stimulus proposal should be in the range of $100 - $150 billion dollars. He further stressed that any package be designed to "kick in quickly." Otherwise, the package wouldn't do much to help.

Nearly all parties agree that a stimulus measure must be immediate and temporary - a boost to the economy rather than a long-term fix. In fact, most believe that the government would be unable to sustain anything long-term due to the increase in national debt. Tony Fratto, White House spokesman noted, according to the reuters.com article, that, "the most important thing is that they should be temporary, they need to be effective, they need to be things we can get done quickly."

The stimulus package will likely be supported by Congress, who also realize that something must be done quickly to support the sagging economy. Reuters reports House Speaker Nancy Pelosi stated that, "we have every reason to think, to be hopeful . . . that we can get this job done." That report indicated that congress believes that a plan can be hammered out between the president and congress by mid-February.