Bush Says Rebates Will Boost Economy, Help Consumers
President George W. Bush said the tax rebates Americans will start getting next week will boost the economy and help them pay their bills.
“The money is going to help Americans offset the high prices we're seeing at the gas pump and the grocery store,'' Bush said at the White House. “It will also give our economy a boost to help us pull out of this economic slowdown.''
U.S. consumer confidence fell more than forecast in April to a 26-year low, as record fuel prices and rising unemployment threatened to reduce spending, according to a report issued today.
The rebate checks are part of a $168 billion economic stimulus plan that Bush signed into law more than two months ago. The Treasury will send more than 7 million tax rebates electronically next week and on May 9 will begin mailing checks to U.S. households.
About 130 million households will receive rebates during the next few months, Bush said. The payments will be up to $600 for individual taxpayers, $1,200 for couples plus $300 per child.
Congressional Democratic leaders say they will press Bush for more legislation to spark the slowing economy. They are weighing a plan to boost spending on highways and other infrastructure as well as other spending measures http://easy-quick-payday-loans.com payday loan cash advance loan.
`The Strain'
“The strain of the economic downturn on middle- and low- income families demands, in my view, consideration of a second stimulus package,'' House Speaker Nancy Pelosi said at a press conference in Washington today. “We have begun some conversations with the administration and the Republicans on that.''
Bush has said he wants to examine the effects of the first stimulus measure before considering a second.
Only three out of 10 consumers plan to spend the tax- rebates, according to the Reuters/University of Michigan report on consumer sentiment issued today. Most of those polled said they intend to use the money to pay down debt or boost savings, the report said.
Consumers are growing increasingly anxious because the economy has lost almost a quarter-million jobs this year, the cost of refueling a car is up 17 percent and property values have fallen. Sales of houses and cars have declined as a result, contributing to a slowdown that may bring an end to the six-year expansion.
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