News (engl.)

verfasst von YIHI, 07.01.2001, 23:10

Bush Aide Wants Fast Work From Congress on Tax Cut
WASHINGTON (Reuters) - A top economic adviser to President-elect George W. Bush said on Sunday that details of the tax package Bush will send to Congress were still not final but that Bush was depending on ``speedy approval'' on Capitol Hill, ``as quickly as they can move.''

In an interview on the ``Fox News Sunday'' program, Lawrence Lindsey said it was becoming clear that many sectors in the U.S. economy ``are in deep trouble'' and that the recent moves by the Federal Reserve to cut interest rates would not by themselves halt the economic slowdown.

He said Bush would, therefore, press quickly for his proposed $1.3 trillion tax cut.

``I think you need both,'' Lindsey said.

On the ABC ``This Week'' program, he added, ``Things are deteriorating rather quickly and the economy definitely needs a shot in the arm.''

Lindsey, tapped by Bush to be White House economic adviser, said the incoming administration was considering ``speeding up the tax cut in some way'' and if such a decision was made, it would likely front-load the benefits of a tax cut by reducing the amount of taxes withheld from workers' paychecks.

``That would obviously be the way it would be done,'' he told the ABC program.

Lindsey earlier declined to say whether the incoming administration would propose a package retroactive to Jan. 1 in a bid to get relief to consumers as quickly as possible. But he did say Bush would make across-the-board cuts in the tax rate a priority.

``The details of that have yet to be worked out,'' he said. ''What we do need is speedy approval by Congress. And that's why we're making the case so strongly now.''

``We think that the Congress should... act very quickly... as quickly as they can move,'' he said.

Democratic Sen. John Breaux of Louisiana said, however, that a cut in the tax rate, to be phased in beginning in 2002 as Bush has proposed, would not have an immediate effect, and that the Bush team should proceed with a less sweeping tax package.

``Certainly something that can get passed early on is important,'' Breaux told the Fox program. ``I think it's a mistake to come out with the most controversial proposal first.''

Lindsey, a former Fed governor, said the tax relief was necessary, including for unincorporated businesses -- which include many small businesses -- in addition to moves by the Federal Reserve Board, which unexpectedly slashed key interest rates by half a percentage point last week.

``Monetary policy doesn't work instantaneously either,'' he insisted, citing lags of up to 18 months between interest rate cuts and effects on the economy.

Lindsey said the interest rate cut of last week would help the typical credit card borrower by about $2 a month, where Bush's tax cut for a family earning $40,000 would save $1,600 year, or $32 a week.

``That's a much bigger heft,'' he said.



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gesamter Thread:

• Bush-Berater: Bush-Regierung wird einem ''starken Dollar'' verpflichtet sein - H. Thieme, 07.01.2001, 22:47
  • Phantasie vs. Realität - YIHI, 07.01.2001, 22:58
    • Re: Phantasie vs. Realität; Danke, du hast Recht! (owT) - H. Thieme, 07.01.2001, 23:05
      • News (engl.) - YIHI, 07.01.2001, 23:10
        • Re: News (engl.); Reaktion eine bekannte Redakteurs - H. Thieme, 07.01.2001, 23:40
    • Ich nehme an,"DER" Durchschnitts-Ami arbeitet genausoviel wie"DER" Deutsche - buckfish, 07.01.2001, 23:49
      • Das war sicher mal wieder notwendig - Danke - nereus, 08.01.2001, 00:04
      • Die meisten arbeiten sogar mehr und kriegen weniger. - ufi, 08.01.2001, 08:35