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Democrats to release stimulus planPelosi, Daschle hit Bush on economy
By Sean Loughlin
WASHINGTON (CNN) -- Dismissing President Bush's as-yet-unreleased economic stimulus plan as a "Trojan horse," incoming House Minority Leader Nancy Pelosi said Friday congressional Democrats would release their own plan Monday -- one day before the administration is to unveil its ideas. The move sets the stage for what is likely to be a pitched partisan battle over how best to stimulate the lackluster economy. The 108th Congress convenes Tuesday, and, by all accounts, the economy is at the top of the domestic agenda. Democratic criticism of the Bush plan -- some details of which have been leaked out in advance -- grew Friday. In remarks prepared for delivery Saturday, Senate Democratic leader Tom Daschle said the president's ideas would help "the wealthiest Americans." Pelosi announced the Democratic schedule at a news conference, and she too criticized the president's plan as ineffective, fiscally irresponsible and weighted toward the wealthy. "The speculation that I see doesn't indicate that there's much stimulus in the package," Pelosi said, commenting on accounts of the president's plan. She dismissed the plan as a "Trojan horse to wheel in some tax breaks for the high end that they're so fond of." She criticized the administration for not advocating sooner an extension of unemployment benefits. "It is certainly going to be too little to late but we'll just see how little it is," Pelosi said. Daschle took aim at the Bush administration over the economy in the Democratic weekly radio address, which is scheduled to air Saturday. "Democrats know the key to restarting economic growth: tax relief for middle class families; business incentives to create new jobs, and investments in human talent," Daschle said, according to a transcript of his comments released by his office. "Unfortunately, recent reports suggest that the president's first proposal this new year will do none of those things. Instead, the president's idea of helping the economy seems to have centered around writing a special tax break for corporate dividends." Despite the critical comments, Pelosi -- the first woman to be elected to lead a party in Congress -- said she would work with the administration and Republicans to find "common ground" on any economic stimulus package. But Pelosi's remarks and those of Daschle suggest a political battle over competing tax breaks and benefits is virtually assured. 'Class warfare'
Thursday, President Bush lamented what he described as "class warfare," responding to Democratic criticism that his tax breaks disproportionately benefit wealthier Americans. He said he would outline a plan that would help the unemployed and focus on the creation of jobs. He is scheduled to detail his proposals in a speech scheduled for delivery Tuesday in Chicago. (Full story) Reaction to that plan has already started. Pelosi said the "so-called stimulus package" would favor the rich. She said a plan under consideration to reduce the tax on dividends could cost as much as one-quarter of a trillion dollars over a 10-year period. And she said that 25 percent of such a cut would go to individuals making at least $1 million annually. Pelosi released few details about the Democratic package. "It will be fair," she said. "It will be fiscally sound. It will create jobs ... and it will grow the economy." Congressional sources said the Democratic plan would cost less than the White House plan in the long-term, but would be more expensive in the short-term. That reflects the Democratic belief that more must be done immediately to bolster the economy. The sources said the Democratic plan would include a refundable tax credit, similar to the 2001 tax rebate checks. However, the Democratic proposal would cover even those people who don't pay income taxes, unlike the 2001 tax rebate. -- CNN Congressional Correspondent Jonathan Karl contributed to this report.
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