White House considering tax break plan - WSJ
TOKYO Jan 9 (Reuters) - The Bush administration is considering tax rebates of about $500 for households and tax breaks for businesses to help the economy avoid a recession, the Wall Street Journal reported on Wednesday.
The White House's main options include a tax rebate of perhaps $500 to encourage spending among individuals and a change in tax laws that would allow companies to deduct from taxes a substantial portion of new investment in equipment, the paper said, citing sources familiar with the matter.
The article was cited by traders as giving a boost to the dollar against the yen JPY= on Wednesday and helping Asian stock markets recover from early losses. Japan's broad TOPIX .TOPX stock index gained more than 1 percent.
The Journal said that President Bush is expected to prepare an economic stimulus package before his State of the Union address on Jan. 28.
Bush has also urged Congress to make permanent tax cuts enacted since he took office in 2001 to help the economy's health. (Reporting by Eric Burroughs; Editing by Rodney Joyce