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CNN Live At Daybreak

Preview of President Bush's Economic Stimulus Plan

Aired January 07, 2003 - 06:30   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.


CAROL COSTELLO, CNN ANCHOR: President Bush unveils his prescription for the ailing economy this afternoon in Chicago. That will happen around 1:00 Eastern Time. CNN will carry it live.
CNN's Skip Loescher joins us now from Washington with a preview of that.

So, give us the skinny.

SKIP LOESCHER, CNN CORRESPONDENT: Good morning, Carol.

The president's plan, totaling 10 years, $600 billion -- that's the cost of it. Mr. Bush says that is necessary to stimulate the economy over the long haul. Democrats say that's simply too much money and will result in higher deficit spending.

As we go down the list here, the elimination of taxes now on all stock dividends, a measure Mr. Bush says will cause businesses to invest more, and therefore create more jobs. Democrats say, no, that really isn't necessary; that that is simply directing more money at the wealthy.

Tax breaks for businesses, there will be more of those in the president's plan, and for individuals. Individuals receiving a tax break of up to $1,000 in this fiscal year, according to the president's plan. Increase in the child tax credit as well here, up to $1,000 being proposed by the president. An extension of unemployment benefits, along with $3,000 to help people get retraining, so that they can get back into the job market if they have lost their job. A decrease in the marriage penalty tax also on the Bush agenda. And federal dollars for many states, federal dollars to help the states pay for homeland security.

The major portions of the president's bill, Carol, that's what they are.

COSTELLO: OK, Skip, let's get to the bottom line. I'm doing my taxes. In fact, I'm working on them right now. What can I expect in 2003?

LOESCHER: I think it's hard to tell. What they're saying now is you can expect up to $1,000 in 2003 if this passes. Then the question is: Will they make it retroactive so that it will be there for 2002? Probably not, but you'll probably get it for 2003 sometime later this year or next year.

COSTELLO: Is that the average person? I mean, do you... LOESCHER: That's -- according to the White House, the average person would get about $1,000.

COSTELLO: So, a person making $40,000 a year would get $1,000, as would a person making $80,000 a year?

LOESCHER: Yes, but the big difference there is when you factor in the elimination of the tax on stock dividends, people making $80,000 are much more likely to be in the stock market than people making $30,000.

COSTELLO: Well, I just want to clarify, and I know we have to go, but stock dividends -- that's the profits you make on stocks. And the president's plan would save about $300 billion just from that, because it would eliminate all of the tax on dividends, right?

LOESCHER: Yes. Eliminate it totally, Carol, exactly. That's what would happen. The president says, though, the side part of this -- the good part of it is simply that it will give businesses more money to invest in plants and equipment, and therefore create more jobs.

COSTELLO: So the Republicans say; of course, the Democrats disagree. Sure to be a fight on Capitol Hill. Skip Loescher, many thanks.

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 Time.

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 7, 2003 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: President Bush unveils his prescription for the ailing economy this afternoon in Chicago. That will happen around 1:00 Eastern Time. CNN will carry it live.
CNN's Skip Loescher joins us now from Washington with a preview of that.

So, give us the skinny.

SKIP LOESCHER, CNN CORRESPONDENT: Good morning, Carol.

The president's plan, totaling 10 years, $600 billion -- that's the cost of it. Mr. Bush says that is necessary to stimulate the economy over the long haul. Democrats say that's simply too much money and will result in higher deficit spending.

As we go down the list here, the elimination of taxes now on all stock dividends, a measure Mr. Bush says will cause businesses to invest more, and therefore create more jobs. Democrats say, no, that really isn't necessary; that that is simply directing more money at the wealthy.

Tax breaks for businesses, there will be more of those in the president's plan, and for individuals. Individuals receiving a tax break of up to $1,000 in this fiscal year, according to the president's plan. Increase in the child tax credit as well here, up to $1,000 being proposed by the president. An extension of unemployment benefits, along with $3,000 to help people get retraining, so that they can get back into the job market if they have lost their job. A decrease in the marriage penalty tax also on the Bush agenda. And federal dollars for many states, federal dollars to help the states pay for homeland security.

The major portions of the president's bill, Carol, that's what they are.

COSTELLO: OK, Skip, let's get to the bottom line. I'm doing my taxes. In fact, I'm working on them right now. What can I expect in 2003?

LOESCHER: I think it's hard to tell. What they're saying now is you can expect up to $1,000 in 2003 if this passes. Then the question is: Will they make it retroactive so that it will be there for 2002? Probably not, but you'll probably get it for 2003 sometime later this year or next year.

COSTELLO: Is that the average person? I mean, do you... LOESCHER: That's -- according to the White House, the average person would get about $1,000.

COSTELLO: So, a person making $40,000 a year would get $1,000, as would a person making $80,000 a year?

LOESCHER: Yes, but the big difference there is when you factor in the elimination of the tax on stock dividends, people making $80,000 are much more likely to be in the stock market than people making $30,000.

COSTELLO: Well, I just want to clarify, and I know we have to go, but stock dividends -- that's the profits you make on stocks. And the president's plan would save about $300 billion just from that, because it would eliminate all of the tax on dividends, right?

LOESCHER: Yes. Eliminate it totally, Carol, exactly. That's what would happen. The president says, though, the side part of this -- the good part of it is simply that it will give businesses more money to invest in plants and equipment, and therefore create more jobs.

COSTELLO: So the Republicans say; of course, the Democrats disagree. Sure to be a fight on Capitol Hill. Skip Loescher, many thanks.

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 Time.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.