Yeetle Box - George W. Bush Seeks Stimulation

WASHINGTON - President Bush on Friday called for $145 billion worth of an economic stimulus package in the form of tax cuts to fend off a possible recession. Fears mount that a severe housing slump and painful credit crisis could cause people to close their wallets and businesses to put a lid on hiring, throwing the nation into its first recession since 2001 - GWB's first year in office.

Said President Bush, "We have to something to stimulate people in this great country. The stimulation they receive from tax cuts, stimulates me and the economy. I'm the stimulation president."

Federal Reserve Chairman Ben Bernanke entered the stimulus debate Thursday, endorsing the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy. Mr Bernanke remarked that stimulating George W. Bush is his highest priority.

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. Instead, Democrats favor raising taxes, then cutting taxes, depending on poll results for potential voters ages 35 to 55.

White House counselor Ed Gillespie said Friday the White House would still like to see the tax cuts made permanent, but the president believes a stimulus plan needs to be put into place within the next few weeks. "He's seriously aching for stimulation," said Gillespie.

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. "We're looking for a WOW factor here."

“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. "It's strange how people spend money when they get it," he mused.

Bernanke declined to endorse any particular approach, but he did say he preferred one he would like.

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. Why businesses would invest in food stamps is an unknown.

House Speaker Nancy Pelosi said she wanted legislation enacted within a month and said the government must “spend the money, invest the resources, give the tax relief in a way that again injects demand into the economy, puts it in the hands of those who need it most and into the middle class ... so that we can create jobs.”

For now, Bernanke was hopeful the country could skirt a dangerous downturn. “We’re not forecasting recession but, rather, at this point, slow growth - which is sort of like a recession but not a recession as defined in Merriam-Webster's.”

An condition of anonymity, Dick Cheney, who once shot a man in the face, stated that tax breaks send the wrong message to terrorists groups. "It makes us look poor," he quacked.

Though proven to fail in 2001, most agree the country should give tax refunds another go rather than bother large corporations with the task of hiring people who need work. Said one presidential advisor, "We have been put on notice by several Fortune 100 companies that a stimulus package for the American people should not adversely effect their bottom line. We intend to keep that promise."

The Yeetle Box