Bush calls for tax cuts to revive economy

President George W. Bush called for $145 billion in tax relief and other incentives to revivie a sputtering economy facing a potential recession. Speaking at the White House today after meeting privately with his economic advisers including Secretary of the Treasury Henry Paulson, Mr. Bush said that a growth package must include tax incentives for business investment and "direct and rapid" tax relief for individuals, according to published reports. The President said that to be effective, an economic stimulus package would need to roughly represent 1% of the gross domestic product. Mr. Bush said that Congress and the administration need to settle on something as soon as possible to "keep our economy growing and create jobs." "Letting Americans keep more of their money should increase consumer spending," he said. Earlier today, Treasury Secretary Henry Paulson predicted that the Bush administration and Congress would work together to enact a stimulus package that would provide aid to an economy on the verge of a recession. "This is not an emergency. There is an urgent need," Mr. Paulson said on NBC's Today show this morning, according to a Reuters report. "The long-term fundamentals of our economy are strong," Paulson said. "We believe the economy is going to continue to grow slowly here, but it has slowed down and the risks are to the downside and the President is very focused on taking actions quickly that will give a boost to our economy as soon as possible this year." The Securities Industry and Financial Markets Association welcomed President Bush's proposed stimulus package. "The president has laid out a roadmap that will restore confidence in the economy and hopefully stem the tide of an approaching recession, said Richard Hunt, senior managing director of government affairs at the New York- and Washington-based SIFMA in a statement. "It's important that both the Bush Administration and Congress work in a bi-partisan fashion to assist all Americans caught up in this financial crisis."