Bush plans to hand out $500 tax cheques
President mulling handouts to get the US consumer spending
President George Bush is planning to give US citizens $500 (£255) cheques in
an attempt to boost the economy.
Companies could also get one-off rebates, as the White House plans to give
$100bn (£51bn) back in tax cuts.
US
papers reported that the government is mulling the extraordinary move as it
deals with recession fears.
Companies might get tax rebates for investment in equipment.
Analysts suggested it would have a negligible impact.
‘A one-off tax rebate of, say, £75bn would have a negligible impact, since it
represents just a shade over 0.5% of GDP. A permanent tax cut of that amount
would be much more effective,’ said Lou Crandall, chief economist at Wrightson
ICAP, a research firm.
Further Reading:
Bush
reportedly mulling tax rebates, breaks