The Bush administration proposed as much as $150 billion in corporate investment incentives and personal tax rebates to counter escalating risks to an economic expansion now in its seventh year, according to a report by Bloomberg."Passing a new growth package is our most pressing economic priority," US President George W Bush said yesterday at the White House after meeting his economic advisers.Bush didn't offer specifics on a stimulus plan, saying he wants to reach an agreement with Congress. The administration is considering offering $800 tax rebates for individuals and $1,600 for households, people familiar with the discussions said.Bush separated the plan from his push to make his past tax cuts permanent. That suggests the administration and lawmakers may be able to reach a deal more quickly as Democrats warned against including an extension of the tax reductions in any package. Several Democrats voiced support for Bush's initiative. Treasury Secretary Henry Paulson said the plan would help create about a half-million jobs this year. Bush said Paulson will lead the administration's efforts at crafting a deal with the Democratic-majority Congress.Bush said the package should total about 1% of gross domestic product, which was an annualised $13.97 trillion in the third quarter. Paulson later cited at a press briefing an estimate of $140-150 billion."My advisers and many outside experts expect that our economy will continue to grow over the coming year, but at a slower rate than we have enjoyed for the past few years," Bush said. The plan must be temporary and shouldn't include any tax increases, Bush said.
