Bush May Again Push Tax Breaks

Economic stimulus plan likely to be part of State of the Union address
By Jim O'Neill,  Newser User
Posted Jan 9, 2008 12:13 PM CST
US President George W. Bush discusses the economy at the Union League Club in Chicago 07 January 2008. Bush cited 'increasingly mixed' news about the US economy and warned against taking growth 'for granted,'...   (SAUL LOEB/AFP/Getty Images)
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(Newser) – Tax relief for individuals and businesses are on the table as President Bush seeks to address recession fears, the Wall Street Journal reports. A rebate of $500 for individuals is under consideration, sources said, as is a plan to allow businesses to deduct investment in equipment. Bush is expected to present the plan during his State of the Union address Jan. 28.

Bush turned to similar measures in 2001-02 to stimulate spending, including $300 and $600 tax rebates. Congressional Democrats are working on their own plans, the Journal reports. "There's going to be things on the tax side and things on the spending side," said Sen. Charles Schumer, who's working on a joint House-Senate proposal.