WASHINGTON — With recession fears rising and the stock market tumbling, President Bush on Friday called for up to $150 billion in tax relief for consumers and business — and said there was no time to waste.
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Bush's urgent remarks gave fresh impetus to congressional leaders already hard at work on an economic rescue package that would include extra money for food stamps and jobless benefits in addition to tax rebates of hundreds of dollars each for millions of Americans. The hope is that people would immediately spend those rebates and give the economy a badly needed boost.
"I believe we can come together on a growth package very quickly, and we're going to need to,” Bush said.
Wall Street remained skeptical. The Dow Jones industrial average dropped 59.91 points after plummeting 306 points a day earlier.
Bush said the rescue effort should be both quick and temporary, a one-time boost for a national economy that is in danger of sliding into the first recession since 2001 if it hasn't already edged across that line. The president's tone was somber in his remarks at the White House, but his mood was upbeat later in the day when he visited a factory to underscore his focus on the economy.
"Crank this sucker up,” he exclaimed, an exhortation that could fit his hopes for economic revival, though he was referring specifically to a huge riding mower at Wright Manufacturing. Once the engine was roaring, Bush jumped on and steered the mower playfully.
Despite darkening economic reports, he said that if Congress passes a quick federal relief package, "We're gonna be just fine.”
At the White House earlier, Bush avoided the word "recession” but acknowledged the economy was severely strained by the long housing slump and high oil prices.
"There is a risk of a downturn,” Bush said. For a stimulus package to have much effect, he said it would need to represent roughly 1 percent of the gross domestic product, or about $140 billion to $150 billion.
On Capitol Hill, Democratic leaders pledged to cooperate with Bush and congressional Republicans. Some Democrats, though, said they were disappointed Bush had focused only on taxes.
Treasury Secretary Henry Paulson said the administration was being intentionally vague so as not to taint negotiations with lawmakers, but he spoke with vigor about fast action.
"When we get the legislation, we're going to run like a bunny here to get the relief out,” he said.
Paulson said business incentives the administration envisions would help companies invest, expand and hire more workers. The White House estimates that a stimulus in the range of what Bush wants could create 500,000 additional jobs this year.
"We need to get this deal done and get it out and get money in the hands of our consumers and small business owners.”
Democratic congressional leaders agree that tax relief should be in the package. Lawmakers are considering tax breaks for businesses investing in new equipment and a $500 rebate for individuals, said congressional aides involved in the talks. Details for couples and people with children are still being negotiated.
Senior aides to House Democrats and Republicans, however, said the measure also could contain increases for food stamps, and higher unemployment benefits.
"Democrats welcome President Bush's willingness to work together with Congress to provide urgent relief to the millions of Americans facing economic hardships,” House Speaker Nancy Pelosi, D-Calif., said, adding that the two parties would "work together on the details of a stimulus package.”
Back in 2001, Bush added refunds of up to $300 per individual and $600 per household as a recession-fighting element of the tax cut plan that had been the centerpiece of his 2000 campaign.
Contributing: Associated Press Writers Ben Feller, David Espo and Andrew Taylor
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OKLAHOMA Connection
State reaction from lawmakers
WASHINGTON — Oklahoma lawmakers reacted Friday to President Bush's call for quick action on an economic stimulus package.
•Rep. Mary Fallin, R-Oklahoma City: "American families are currently suffering under spiraling healthcare and gasoline costs, a housing market in disarray and a general anxiety over the economy. The need for action is clear.
"As the president stated today, Congress should deliver immediate and broad-based tax relief that helps families while bolstering business investment and the job market. Americans know how to spend their money better than the government does. Any stimulus package should focus on lessening their tax burden, not more government spending.”
•Rep. Frank Lucas, R-Cheyenne: "With both the administration and both parties indicating they want to make a stimulus package a priority, it appears we should have something passed in short order. And any federal response would need to take effect quickly to ensure the package acts as a stimulus on the current economic slowdown. I'm hopeful as the details are worked out that the final package can do these things.”
•Rep. Dan Boren, D-Muskogee: "I believe there is a real opportunity for both Democrats and Republicans to craft a solution that has a positive impact on the economy. There should be immediate bipartisan action not only on tax relief, but we should also look at ways to rectify the current housing crisis.”
•Rep. John Sullivan, R-Tulsa: "A strong bipartisan economic stimulus plan will help jump-start our nation's economy and ensure that American people and businesses can remain strong. With differences aside and a common goal, Congress could potentially vote on a package as early as February and deliver economic relief to the American people as quickly as possible. I look forward to working on this stimulus package and bringing economic assistance to all Oklahomans.”
By Chris Casteel, Washington Bureau
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