The battle to stimulate the economy has begun, with both Republicans and Democrats claiming they have the better plan. Each party has tilted its proposal toward individuals, and neither includes much relief for construction.
The White House unveiled a plan centered on eliminating all taxes on corporate dividends. In a speech to the Economic Club of Chicago on Jan. 7, President Bush outlined a 10-year, $674-billion package that would also accelerate the income tax cuts set to be phased in between 2004 and 2006. Business would see the $25,000 cap on write-offs for new equipment purchases jump to $75,000. Bush says his plan will increase consumer spending and promote small business growth. "The need for this plan is urgent," Bush says.