By Eileen Buckley
Buffalo, NY – President Bush says he plans to unveil an economic stimulus package next week that will benefit all Americans. Although Mr. Bush has not revealed specifics in the package, one Western New York congressman offered some hints.
US Representative Thomas Reynolds says he's been consulted by the White House on a major economic stimulus package. He says the Administration is in the process of putting together a legislative proposal that would move the economy forward and put people back to work.
"That will bring Congress towards reflecting and debating the creation of jobs, and encouraging new growth in the economy through a number of different incentives," Reynolds said. "A series of targeted tax cuts will be aimed at encouraging job growth and easing the tax burden on working Americans."
Reynolds says one possible tax cut would be a personal tax break on dividends. He says this would encourage individual investment and ensure more honest corporate reporting. Reynolds says under the current tax code, dividends are actually taxed twice. But Reynolds says the tax break would benefit more than just the wealthy.
"It affects almost any investor," Reynolds contended. "If your grandmother has a little AT&T stock that has a dividend, the corporation paid it, which became the first round of the tax, and she would also pay a higher tax than on other investment vehicles."
Reynolds says other items under consideration include corporate investment incentives that would encourage small business growth and create new jobs.
"If people have more money in their pocket, they have more to save, invest and spend," Reynolds continued. "Combined with job growth and job creation, that will help get the economy moving again. We think this will go a long way in jump starting our economy from where it has been."
Reynolds says another top priority for Congress upon returning to work next week will be the extension of unemployment benefits.