February 13, 2008 Bush ready to sign economic package

WASHINGTON (AP) - If government rebate checks ranging from $300 to $1,200 for just about every household don't spur a consumer spending spree strong enough to cure what ails the economy, Congress is ready to throw more money at the problem.

Skeptical economists and a worried public question whether the rebates for more than 130 million Americans and tax breaks for businesses will be quick enough or effective enough to avert a recession, though analysts generally believe the $168 billion economic rescue package President Bush planned to sign Wednesday could help prevent the current downturn from ballooning into a crisis.

Democrats and Republicans who put aside deep differences to craft the plan and rush it to enactment were to join the president at the White House for an afternoon signing ceremony.

The package is designed in part to inoculate lawmakers from vote blame should the economy continue to lag as the November elections bear down. Congressional leaders already are considering more economic rescue measures that could include transportation spending, unemployment aid and measures to address the housing crunch that's at the root of the current economic doldrums.

The centerpiece of this stimulus plan is rebates expected to go out beginning in May to taxpayers and low-income people, including seniors living off of Social Security and veterans who depend on disability checks. Businesses would get tax breaks for investing in new plants and equipment.

Most

"What we've done with the stimulus bill is we've reacted to a weak economy without going back and addressing the cause," said Rep. Melissa Bean, D-Ill. "The stimulus package is bailing water, but now we've got to go back and plug the leak."

The bill would raise temporarily to $729,750 the limit on Federal Housing Administration loans and the cap on loans that Fannie Mae and Freddie Mac can buy. Those measures are designed to provide relief in the market for "jumbo" mortgages and help more homeowners refinance into government-insured loans. --- On the Net: White House: http://www.whitehouse.gov

(Copyright 2008 by The Associated Press. All Rights Reserved.)