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Wednesday, January 23, 2008
Economic Stimulus Package Update
Bush, Congress nearing accord, as Administration cedes some ground to Democrats
House Speaker Rep. Nancy Pelosi (D-CA), Senate Majority Leader Sen. Harry Reid (D-NV), and Congressional Republican leadership met with President Bush last night to discuss the broad outlines of an economic stimulus package. Bush came out of the meeting with a "very positive feeling" while Pelosi was "confident" that a bipartisan agreement could be reached.
So, here's what the package is shaping up to be so far - these are the boundaries that will most likely contain the package.
- $145 billion
- the majority of which will be tax breaks
- some unemployment insurance extension
- some food stamp expansion
But here's the most remarkable development of late:
Paulson said Friday that Bush wants "broad-based tax relief for those who are paying taxes."
But Paulson reversed that formulation yesterday, saying in a speech to the U.S. Chamber of Commerce that "the package must reach a large number of citizens." By saying "citizens" instead of "taxpayers," the secretary opened the door to ideas advanced by Democrats to extend the short-term tax relief to those who pay little to no income taxes.
The administration has gone from hinting that extension of 2001-2003 tax cuts should be in a package to saying that even those too poor to pay taxes should see some of the benefit.
From the WaPo story referenced above, it also looks like there could be a bill ready for Bush's signature by mid-February.
Posted by Craig Jennings
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