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CNN Live At Daybreak
President Bush to Announce Today Plans to Stimulate Economy
Aired January 07, 2003 - 05:02 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.
JOHN VAUSE, CNN CORRESPONDENT: Let's get more now on our top story, President Bush's announcement today on plans to stimulate the nation's sagging economy and put more money in your pocket.
Our Senior White House Correspondent John King brings us an overview of the president's formula.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CORRESPONDENT (voice-over): The first cabinet meeting of the new year and a preview of the president's proposal to give the economy a boost.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A plan that is a very fair plan. It's a plan that recognizes that when somebody has more of their own money, they're likely to spend it, which creates more jobs.
KING: The Bush plan would cost about $600 billion over 10 years. Half of that, roughly $300 billion, would go toward eliminating federal income taxes individuals pay on corporate dividends.
BUSH: It'll encourage investment and that's what we want, we want to encourage investment activity. Investment means jobs.
KING: Mr. Bush will also propose accelerating income tax cuts already passed by Congress, eliminating the tax code's so-called marriage penalty more quickly, a rebate for some child care costs and an extension of emergency unemployment benefits.
ARI FLEISCHER, WHITE HOUSE PRESS SECRETARY: Ninety-two million taxpayers will receive on average a tax cut of $1,083 in 2003. Forty- six million married couples would receive average tax cuts of $1,716.
KING: Democrats say their much more modest one year stimulus plan would give the economy a more immediate boost. The Democrats would spend about $140 billion on a mix of tax rebates to low and middle income Americans, expanded unemployment benefits and direct aid to financially strapped state governments. Democrats complain the Bush approach favors more affluent taxpayers and will drive up the federal budget deficit.
REP. ROBERT MENENDEZ (D), NEW JERSEY: The Democratic plan is significant, fast acting and is fiscally responsible. We stimulate the job market. The president's plan stimulates the stock market.
KING: Financial markets appeared to like the Bush plan. The Dow Jones industrial average gained more than 171 points, and the NASDAQ closed up, as well.
(on camera): The debate over the economy will dominate the early weeks of the new Congress and test both the president's clout following Republican midterm election gains and the Democrats' promises to be much more aggressive in challenging White House priorities.
John King, CNN, the White House.
(END VIDEOTAPE)
VAUSE: And, of course, you can watch CNN's special coverage of the president's speech on the economy right here. That's at 1:00 p.m. Eastern, 10:00 a.m. Pacific.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Economy>
Aired January 7, 2003 - 05:02 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN VAUSE, CNN CORRESPONDENT: Let's get more now on our top story, President Bush's announcement today on plans to stimulate the nation's sagging economy and put more money in your pocket.
Our Senior White House Correspondent John King brings us an overview of the president's formula.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CORRESPONDENT (voice-over): The first cabinet meeting of the new year and a preview of the president's proposal to give the economy a boost.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A plan that is a very fair plan. It's a plan that recognizes that when somebody has more of their own money, they're likely to spend it, which creates more jobs.
KING: The Bush plan would cost about $600 billion over 10 years. Half of that, roughly $300 billion, would go toward eliminating federal income taxes individuals pay on corporate dividends.
BUSH: It'll encourage investment and that's what we want, we want to encourage investment activity. Investment means jobs.
KING: Mr. Bush will also propose accelerating income tax cuts already passed by Congress, eliminating the tax code's so-called marriage penalty more quickly, a rebate for some child care costs and an extension of emergency unemployment benefits.
ARI FLEISCHER, WHITE HOUSE PRESS SECRETARY: Ninety-two million taxpayers will receive on average a tax cut of $1,083 in 2003. Forty- six million married couples would receive average tax cuts of $1,716.
KING: Democrats say their much more modest one year stimulus plan would give the economy a more immediate boost. The Democrats would spend about $140 billion on a mix of tax rebates to low and middle income Americans, expanded unemployment benefits and direct aid to financially strapped state governments. Democrats complain the Bush approach favors more affluent taxpayers and will drive up the federal budget deficit.
REP. ROBERT MENENDEZ (D), NEW JERSEY: The Democratic plan is significant, fast acting and is fiscally responsible. We stimulate the job market. The president's plan stimulates the stock market.
KING: Financial markets appeared to like the Bush plan. The Dow Jones industrial average gained more than 171 points, and the NASDAQ closed up, as well.
(on camera): The debate over the economy will dominate the early weeks of the new Congress and test both the president's clout following Republican midterm election gains and the Democrats' promises to be much more aggressive in challenging White House priorities.
John King, CNN, the White House.
(END VIDEOTAPE)
VAUSE: And, of course, you can watch CNN's special coverage of the president's speech on the economy right here. That's at 1:00 p.m. Eastern, 10:00 a.m. Pacific.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Economy>
