USA: U.S. House of Representatives overwhelmingly approves an economic stimulus plan which President Bush calls a "very good start"

Record ID: 328862

  • Title: USA: U.S. House of Representatives overwhelmingly approves an economic stimulus plan which President Bush calls a "very good start"
  • Date: 30th January 2008
  • Summary: (SOUNDBITE) (English) U.S. PRESIDENT GEORGE W. BUSH SAYING: "Before I sign the executive order on earmarks, I do want to congratulate the House of Representatives for overwhelming passing an economic growth package that will help our economy. The temptation is going to be for the Senate to load it up. My concerns is that we need to get this bill out of the Senate and on my desk so the checks can get in the hands of our consumers, and our businesses can, you know, be assured of the incentives necessary to make investments. Anyway, I do want to thank the speaker and Leader Boehner for working quickly and working in a bipartisan fashion. This is a very good start." PHOTOGRAPHERS WIDE OF BUSH SPEAKING
  • Embargoed: 14th February 2008 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Economic News,Domestic Politics
  • Reuters ID: LVA83390O5B3HVHLQVFLVP1PJX0V
  • Story Text: The U.S. House of Representatives overwhelmingly approved a plan to boost the wavering U.S. economy. President Bush calls it "a very good start" and urges the senate to approve it swiftly.
    The U.S. House of Representatives on Tuesday (January 29) overwhelmingly approved a plan to give the U.S. economy a $146 billion election-year boost through tax rebates and other measures to stave off a possible recession by boosting business and consumer spending.
    The plan, which passed by a vote of 385-35 and is backed by President George W. Bush, includes tax rebates of up to $600 for individuals and $1,200 for married couples, plus $300 per child. The legislation also includes tax breaks to encourage business investment in new equipment.
    It now goes to the Senate, where Senate Majority Leader Harry Reid said it would be taken up quickly. The Nevada Democrat said he expects a number of amendments to be offered to the bill. But backers of the House bill are concerned that demands in the Senate to spend more for roads and other programs will slow down the legislation.
    Lawmakers are aiming to get a bill to Bush's desk by mid-month and any changes in the Senate would mean further negotiations with the House and the White House to work out their disagreements.
    House Speaker Nancy Pelosi, a California Democrat, and House Republican Leader John Boehner of Ohio, urged the Senate to accept the House-passed package without delay.

    "I myself, as speaker of the House, would like to call upon the Senate to take up our legislation and to pass it quickly. It is essential to the relief of some of the hardship that America's families are feeling. Many Americans in the middle class are living paycheck to paycheck. They're feeling -- they have a struggle with the cost of -- the rising cost of groceries, of gasoline, of health care -- the list goes on. Today, Congress acted in a way that is directly relevant to their lives and we hope that the Senate will follow suit," Pelosi said.
    Lawmakers are hoping the rebates and business incentives will spur consumer and corporate spending and keep the economy from dipping into a recession ahead of the November presidential and congressional elections. U.S.
    economic growth is expected to slow this year in the face of a downturn in the housing market, a subprime mortgage crisis, a tightening credit market and rising oil prices.
    Bush also congratulated the House of Representatives for "overwhelming passing an economic growth package that will help our economy" and described the move as "a very good start".
    The House plan would cost the federal treasury nearly $146 billion this year and almost $15 billion next year, according to the latest estimates by the Joint Tax Committee.
    While most economists expect the U.S. economy to slow significantly this year, it is unclear whether a full-blown recession is in the offing.
    The Senate Finance Committee is set to consider its proposal on Wednesday.
    That plan, with an estimated cost of about $156 billion, would also extend unemployment insurance benefits and provide some additional business tax breaks. A proposed $500 per individual and $1,000 per couple rebate in the Senate package would go to all tax filers who report at least $3,000 in income for 2007. Seniors with Social Security income also would be eligible for the rebate.
    Under the House-passed measure, low-income individuals who did not earn enough to pay income taxes would get a $300 rebate, plus the child credit.
    The House proposal would phase out rebates for individuals earning more than $75,000 in taxable income and for married couples earning more than $150,000. The Senate proposal has no income caps.
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