President Bush is considering a new package of corporate tax breaks in a bid to perk up Wall Street, calm volatile markets and send a message the economy is sound, the Washington Post reports. At the same time he rejected Democratic proposals to allow Fannie Mae and Freddie Mac more leeway to buy mortgages to bolster the shaky housing market.
"If we want to be a competitive nation, we've got to analyze a lot of things, including taxes," Bush said. "I'm inclined to want to push hard." Treasury Secretary Henry Paulson released a paper last month suggesting the corporate tax rate could be reduced from 35% to 27%. Any such proposal is likely to meet stiff resistance from Dems.