| ||
| ||
| ||
 |
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Bush steps up pressure on lawmakers to support tax cuts'Let 'em know your opinion'
LITTLE ROCK, Arkansas (CNN) -- Stepping up the pressure on lawmakers opposed to his economic plan, President Bush on Monday urged Americans to call their representatives in Congress to let them know they want tax cuts. "I would hope you would call members of your congressional delegation to let 'em know what you think, let 'em know your opinion," Bush told an audience of enthusiastic supporters at a convention hall here. His sales pitch comes as lawmakers in Washington wrangle over the merits of more tax cuts, with some moderate members of Bush's own party raising questions over the size of the package sought by the White House. Bush's speech was a repeat of one he has delivered in recent weeks -- assailing Congress for moving too slowly on approving more tax cuts, touting his plan as just the right tonic for a lackluster economy and heralding the military success of the war in Iraq. Monday, Bush was far more direct in his lobbying effort, telling voters here to "remind" their representatives and senators in Congress of the need for more tax cuts. His visit to Arkansas was significant. It is home to Sen. Blanche Lincoln, a Democrat who supported Bush's tax cuts two years ago, but is cool to the latest White House proposal. He made a similar pitch in Ohio last month -- home to Sen. George Voinovich, a Republican who has criticized the Bush plan. "Last Friday, we got some troubling economic news: The unemployment rate is now at 6 percent. This news ought to serve as a clear signal to the United States Congress that we need a bold economic recovery plan so people in America who want to work can find a job," Bush said. The president originally proposed a 10-year package of about $726 billion in tax cuts. The House has scaled that back to $550 billion, and the Senate voted not to enact tax cuts of more than $350 billion. Bush has since pushed for tax cuts of "at least" $550 billion. In a statement, Lincoln said she agreed with much of what Bush has proposed, such as expanding the child tax credit. But she said his proposal to eliminate taxes on dividends would only help a small portion of taxpayers in Arkansas. "Only 7.8 percent of Arkansans receive dividend income, meaning this aspect of his plan won't help those who need it the most," she said. Lincoln said she would push for other tax cuts, including making more mortgage insurance tax deductible for home buyers. GOP qualmsThe fight is not simply a matter of Democrats versus Republicans. While Democrats are generally united in their opposition to the Bush plan, some moderate Republicans also have raised objections to the Bush plan, citing the costs of the war and reconstruction in Iraq, plus growing federal deficits. The centerpiece of the Bush plan -- the elimination of taxes on stock dividends -- has run into rough water in the Republican-controlled Senate. Some Republicans want to phase in such a break or place limits on it. But Sen. Chuck Grassley of Iowa, chairman of the Senate Finance Committee, said Monday evening after meeting with the Republican Conference that a new tax-cut legislation would be presented Tuesday and would contain a "very aggressive dividend part." Speaking on CNN's Lou Dobbs Moneyline, Grassley said details of the new plan would be revealed on Tuesday but the tax cut proposal would be "somewhat bigger than $350 billion" with spending cuts to offset tax cuts. "The exact figure (of the tax cut) I will release tomorrow," Grassley said. Regarding the stock dividends issue, he added, "It won't be exactly the way the president had it, but it will be very, very aggressive and will send a strong signal that we in the majority party feel that there's a great deal of anxiety about the economy." Grassley predicted that under the new plan, the U.S. economy would grow in the first 18 months by 1.4 million jobs and a 1.5 percent increase in the gross domestic product. The bill, sources said, does includes much of what the president wants, including accelerating the reduction of income tax rates, boosting incentives for business investment and eliminating the so-called "marriage penalty" in the tax code. These sources said that some variation of the Bush proposal on dividend taxes may well wind up in the final legislation. There are several ideas under consideration by Republicans, including phasing in an elimination of the dividend taxes. Another idea, dubbed "capped exclusion," would exempt a portion of dividend income from taxation. Meanwhile, Senate Minority Leader Tom Daschle, D-South Dakota, is scheduled to introduce what his office is calling a "jobs and growth package." The 10-year package, with an estimated price tag of $150 billion to $180 billion, includes direct aid to states and various tax credits, but it does not include any form of the dividend tax break sought by the White House. CNN Capitol Hill Producers Steve Turnham and Trish Turner contributed to this report.
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
