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CNN Live Today
Economic Plans Being Rolled Out Today, Tomorrow
Aired January 06, 2003 - 11:09 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: President Bush today is outlining his plan for jump starting the economy tomorrow, but some details of the economic stimulus package are already emerging. Our White House correspondent, Suzanne Malveaux, is live with a preview of what we can expect -- Suzanne, good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. President Bush is going to announce that economic stimulus package tomorrow in Chicago. He's also going to be talking about the details with his cabinet members this afternoon. It is a $600 billion ten-year economic package. A senior administration official telling us that really the centerpiece of this is the elimination of the tax on stock dividends. That official saying that it's a double tax, and it is an issue of fairness, that dividends are taxed once as corporate profits, and then a second time as income to shareholders. The whole idea is if you eliminate this tax, then you will be able to boost the stock market. At least that is what the White House is hoping, but already some critics saying it's not going to do any good in the short term, really question whether or not it's going to be able stimulate the economy, and also saying that it's only going to benefit the wealthiest Americans, the top 5 percent.
Want to give you some highlights, however, of the economic stimulus package the White House expected to unveil tomorrow. A part of that being the elimination of tax on stock dividends, as we mentioned before. Also tax breaks for businesses, tax breaks for individuals, an increase in the child tax credit, an extension of the unemployment benefits, a decrease in the marriage penalty tax, and federal dollars for needy states.
Now, the administration hopes to push this forward through the House. They're confident that they can do that, but they are going to face some opposition in the Senate, so it really is going to be a big compromise. But of course, the administration realizes -- recognizes how important this is for Americans, for the administration to deal with the economy and how important it will be as an issue for Election 2004 -- Daryn.
KAGAN: Suzanne, I expect we'll also hear from the Democrats on the same matter.
MALVEAUX: Yes. As a matter of fact, they have their own economic stimulus package that they're unveiling today. It is going to be quite different, and they're already coming out over the weekend, even before the plan is officially introduced, against that elimination of the tax on stock dividends. They really say, and there are a lot of economists that say that it's not going to do anything in the short term, and really question whether or not it is going to give that boost that's necessary.
They argue that it will really be a cut -- a tax cut for middle class folks that will really get the spending increasing and get the economy going again.
KAGAN: Suzanne Malveaux at the White House, thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 6, 2003 - 11:09 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: President Bush today is outlining his plan for jump starting the economy tomorrow, but some details of the economic stimulus package are already emerging. Our White House correspondent, Suzanne Malveaux, is live with a preview of what we can expect -- Suzanne, good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. President Bush is going to announce that economic stimulus package tomorrow in Chicago. He's also going to be talking about the details with his cabinet members this afternoon. It is a $600 billion ten-year economic package. A senior administration official telling us that really the centerpiece of this is the elimination of the tax on stock dividends. That official saying that it's a double tax, and it is an issue of fairness, that dividends are taxed once as corporate profits, and then a second time as income to shareholders. The whole idea is if you eliminate this tax, then you will be able to boost the stock market. At least that is what the White House is hoping, but already some critics saying it's not going to do any good in the short term, really question whether or not it's going to be able stimulate the economy, and also saying that it's only going to benefit the wealthiest Americans, the top 5 percent.
Want to give you some highlights, however, of the economic stimulus package the White House expected to unveil tomorrow. A part of that being the elimination of tax on stock dividends, as we mentioned before. Also tax breaks for businesses, tax breaks for individuals, an increase in the child tax credit, an extension of the unemployment benefits, a decrease in the marriage penalty tax, and federal dollars for needy states.
Now, the administration hopes to push this forward through the House. They're confident that they can do that, but they are going to face some opposition in the Senate, so it really is going to be a big compromise. But of course, the administration realizes -- recognizes how important this is for Americans, for the administration to deal with the economy and how important it will be as an issue for Election 2004 -- Daryn.
KAGAN: Suzanne, I expect we'll also hear from the Democrats on the same matter.
MALVEAUX: Yes. As a matter of fact, they have their own economic stimulus package that they're unveiling today. It is going to be quite different, and they're already coming out over the weekend, even before the plan is officially introduced, against that elimination of the tax on stock dividends. They really say, and there are a lot of economists that say that it's not going to do anything in the short term, and really question whether or not it is going to give that boost that's necessary.
They argue that it will really be a cut -- a tax cut for middle class folks that will really get the spending increasing and get the economy going again.
KAGAN: Suzanne Malveaux at the White House, thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
