A ‘Challenging Period’ For The Economy
January 19, 2008, 4:22pm
Challenging period. Downturn. Continued instability. Jeopardy. Presidents don’t use those kinds of words willingly to describe the American economy, but President Bush did in his weekly radio address today. Bush said the economy is in such bad shape that it needs an artificial boost from the government.
“After careful consideration, and discussion with members of Congress, I have concluded that additional action is needed to keep our economy growing and creating jobs,” Bush said. “Congress and my Administration need to work together to enact an economic growth package as soon as possible.” He said enactment of a stimulus package is “our most pressing economic priority.”
Bush’s goals for the stimulus package are for it to equal about 1 percent of gross domestic product, to encompass broad-based tax relief, and to be immediate and temporary. He said it should be aimed at boosting both business investment and consumer spending.
Separate from the short-term economic stimulus package, Bush urged Congress to make previous tax cuts permanent. “Unless Congress acts,” he said, “the marriage penalty will make a comeback, the child tax credit will be cut in half, the death tax will come back to life, and tax rates will go up on regular income, capital gains, and dividends.”
Democrats also emphasized America’s economic woes in a weekly radio address delivered by House Financial Services Committee Chairman Barney Frank of Massachusetts. He agreed with Bush that “the need for action is now undisputed, so we should act together and we should act quickly.”
“Democrats stand ready to work with the president and congressional Republicans to put together a bipartisan package, including tax rebates for most Americans and one-time increases in programs directed at those who are bearing the heaviest burdens in this economy,” Frank said. Democrats are “guided by the need for increased assistance to those who are unemployed, to those hit hardest by the increases in food and energy costs, and, importantly, to those who have lost their homes or are struggling to avoid foreclosure.”
Categories: Podcast of the Week, Weekly Radio Address, Taxes, Economy
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