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CNN Live Sunday

Washington Discusses Measures to Help the U.S. Economy

Aired September 09, 2001 - 17:18   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.
STEPHEN FRAZIER, CNN ANCHOR: More signs of a weakening economy this weekend. In Washington, much talk about now about how to pump some life into it. Tax rebate came first, and now Republicans and some Democrats are proposing to cut the nation's capital gains tax. This was suggested in the face of the shrinking budget surplus and concerns about how that will affect Social Security.

CNN White House correspondent Kelly Wallace has details of this newest proposal.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This is heads. This is tails. Here we go.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT (voice-over): If boasting economy could only be as easy as a coin toss. President Bush opening the NFL season, but coming under increasing pressure to do more to stop the downturn. Republicans stepped up the call for a capital gains tax cut.

SEN. DON NICKLES (R), OKLAHOMA: We think it will have a positive impact on the economy. It will create jobs. It will help a lot of industries that are struggling right now.

WALLACE: The GOP wants to cut the tax rate on profits after selling investments from 20 to 15 percent, but Mr. Bush, spending a rare weekend in Washington, refuses to sign off on a capital gains tax cut just yet, believing the tax rebate checks and recent interest rate cuts will eventually give the economy a kick. The president urges patience, but some in the GOP prefer acting sooner than later.

SEN. TRENT LOTT (R-MS), MINORITY LEADER: When the economy is having difficulty and when people are losing their jobs, you don't stand around and hope for the best. You take action, and I think we should do that.

WALLACE: Democrats say the action needed is a new budget from the president.

UNIDENTIFIED MALE: Presidents lead. That's the deal. And that's what you sign up for, that's what you get paid the big bucks for that. WALLACE: To that, Republicans say Democrats are playing the blame game without offering any plan of their own, but one Democratic leader said his party might consider an additional tax rebate as an alternative to the capital gains tax cut.

UNIDENTIFIED MALE: Something that puts money into people's pockets.

QUESTION: So, another rebate, a larger...

UNIDENTIFIED MALE: It could be a rebate. It should go to everybody that pays taxes, not just income taxes.

WALLACE: But any tax cuts would have to be matched with a reduction in spending on other popular programs, because the non- Social Security surplus is just about gone, and both parties have pledged not to us excess Social Security funds to balance the budget.

(on camera): And so, pressure is building within Mr. Bush's own party for him to do more, with Republicans quite concerned they will be the ones getting the blame if things don't turn around by next year's congressional elections.

Kelly Wallace, CNN, the White House.

(END VIDEOTAPE)

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