Bush Favors Tax Rebates for Stimulus

Congress considers refunds of up to $800 as recession fears grow
By Wesley Oliver,  Newser Staff
Posted Jan 17, 2008 8:22 PM CST
President Bush spoke with congressional leaders today via conference call and for the first time lent his support to congressional efforts to mount an economic stimulus package. (AP Photo/Pablo Martinez...   (Associated Press)
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(Newser) – President Bush's plan to give the economy a temporary lift favors tax rebates of up to $800 for individuals and tax breaks for businesses, the AP reports. Bush met privately with lawmakers today and will outline his plan tomorrow. Congress hopes to act quickly as fears of a recession grow. The president did not push for a permanent extension of his tax cuts, the AP notes.

Bush, demanding legislation that’s quick and temporary, favors tax breaks but opposes any tax-funded stimulus package, a White House spokesman said, adding that he expected easy negotiations with Congress. Fed chief Ben Bernanke also publicly backed a stimulus for the economy today. The Dow, meanwhile, plunged more than 300 points amid an array of troubling financial reports.