US President George W. Bush today put the final touches on a $600 billion plan aimed at boosting the economy and the stock market, brushing aside criticism from Democrats and some economists that it would have little effect while deepening budget deficits.
President Bush will unveil the package in Chicago tomorrow, launching a major lobbying campaign aimed at selling a new round of tax cuts for businesses and individuals to Congress and the American people.
President Bush will dispatch his newly appointed chief economic adviser, Mr Stephen Friedman, and other top aides to lay out the package to Wall Street executives and key lawmakers.
The centerpiece of Bush's package will be the complete elimination of taxes on dividends paid to shareholders. Administration officials believe the change, which will cost as much as $300 billion over 10 years, could boost stock prices by 10 per cent or more.
President Bush also will ask Congress to accelerate reductions in income tax rates for all income brackets, including the nation's top earners, and allow companies to quickly write off more of their investments. Other provisions will increase tax credits for families with children and provide billions of dollars in aid to cash-strapped states.
President Bush's re-election chances in 2004 could depend on whether he can get the economy growing, reduce unemployment and break a three-year losing streak for major stock indexes.
