US President George W. Bush is putting together his first public call for an emergency fiscal stimulus bill while negotiations in Congress focus on rebates for taxpayers and other steps to jump-start the sagging economy.
Bush planned to lay out his position yesterday, but he wasn't expected to go into specifics. Press secretary Dana Perino said Bush would demand that any package be effective, simple and temporary -- mirroring calls by Democratic lawmakers for a "timely, targeted and temporary" stimulus measure.
Taxpayers could receive rebates of up to US$800 for individuals and US$1,600 for married couples under a White House plan. Although lawmakers were considering smaller rebate checks and more money for food programs and the unemployed, Bush told congressional leaders that he favors income tax rebates for people and tax breaks for business investment.
US Federal Reserve Chairman Ben Bernanke entered the stimulus debate on Thursday, endorsing the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy.
The scramble to take action came as fears mounted that a severe housing slump and a painful credit crisis could cause people to clamp down on their spending and businesses to put a lid on hiring, throwing the country into its first recession since 2001.
Aides to lawmakers involved in the talks said the White House also wants to eliminate the 10 percent income tax bracket for one year and issue a rebate within months. Advocates for the poor said that tens of millions of people in lower income ranges would be left out or not fully feel the benefit of the White House plan.
Lawmakers were instead discussing a US$500 rebate for individuals, the aides said, with details for couples and people with children still being negotiated.
The rebates would likely be limited to individuals with incomes of US$85,000 or less and couples with incomes of US$110,000 or less, the aides said, speaking on condition of anonymity because no final decisions had been made.
The president did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010, officials said. That would eliminate a potential stumbling block to swift action by Congress, since most Democrats oppose making the tax cuts permanent.
Bernanke voiced his support for a stimulus package in an appearance before the House Budget Committee. He stressed that it must be temporary and must be implemented quickly -- so that its economic effects could be felt as much as possible within the next 12 months.
"Putting money into the hands of households and firms that would spend it in the near term" is a priority, he said.
Especially important is making sure a plan can put cash into the hands of poor people and the middle class, who are most likely to spend it right away, he said, though he added that research shows affluent people also spend some of their rebates.
Bernanke declined to endorse any particular approach, but he did say he preferred one that would not have a long-term adverse impact on the government's budget deficit.
Senior aides to House Democrats and Republicans said in addition to included tax rebates for individuals, the emerging measure would contain tax breaks for businesses investing in new equipment, increases in food stamps and higher unemployment benefits. They spoke on condition of anonymity, since the talks are ongoing and lawmakers have promised not to reveal details.
US stock markets opened higher yesterday as investors waited for Bush to unveil details of his stimulus plan and as General Electric's profits matched expectations.
The Dow Jones Industrial Average jumped 110.39 points, or 0.91 percent, to 12,269.60 just after Wall Street opened for trading. The leading blue-chip index has been battered in recent weeks and closed down over two percent on Thursday.
The tech-rich NASDAQ composite gained 16.22 points, or 0.69 percent, to 2,363.12, while the broad-market Standard & Poor's 500 index increased 6.86 points, or 0.51 percent, to 1,340.11 in early activity.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft