FACTBOX: Bush and Congress seek plan for economy
(Reuters) - President George W. Bush and the Democratic-led Congress are discussing a fiscal stimulus package aimed at shoring up the troubled U.S. economy.
Here are some of the proposals under discussion.
WHAT BUSH AND CONGRESS ARE CONSIDERING
* Bush has said he wants a plan that includes tax rebates for households and incentives for business investment. He has said he thinks a package of around $150 billion, or about 1 percent of gross domestic, product would give the economy a significant boost. The White House said he was not closing the door on changes to the size and details of the package.
* Under an idea floated by the administration, the 10 percent income-tax bracket would be temporarily eliminated and Americans would get the money back in the form of a rebate. Individuals would receive one-time rebates of up to $800 and families would get checks of up to $1,600.
* The proposal to spur business investment would allow firms to immediately deduct from their taxes as much as 50 percent of the cost of new investments.
* Democrats are likely to insist that the plan include some spending to help those likely to be hardest hit in a downturn. They would like to see extensions of unemployment insurance benefits and more money for food stamps.
* Democrats are also interest in seeing the package include financial aid to state governments grappling with budget shortfalls because of reduced tax revenues.
IDEAS THAT BOTH SIDES HAVE TAKEN OFF THE TABLE
* Bush has long wanted to make his 2001 and 2003 tax cuts permanent. Those reductions are set to expire in 2010. But the idea is a nonstarter with Democrats and the White House has said Bush has said he will push for that separately from any negotiations on a short-term stimulus.
* Many Democrats would like to see a boost in spending on public works projects such as roads and bridges, which they say would create jobs and help the economy over the longer term. However, the administration opposes that and Democrats have agreed to set aside such proposals for now.
(Reporting by Caren Bohan, Thomas Ferraro and Richard Cowan; Editing by Doina Chiacu)
