The Presidents Jobs and Growth Plan: Focused on Consumers and Investors
By targeting both consumers and investors, the Presidents Jobs and Growth plan addresses the principal weakness in the economy business investment while helping to ensure that consumption continues to grow. The result: The Presidents plan will help create 1.4 million new jobs over the next two years.
Targeting Business Investment
The Presidents plan targets the source of weakness in the American economy low levels of business investment.
While consumer spending grew over the past two years, total business investment declined for eight consecutive quarters. Investment in office buildings and other commercial structures was particularly hard hit, declining at double-digit rates for four consecutive quarters.
The Presidents plan will help restore business investment by eliminating the double tax on corporate income, reducing tax rates on small business income, and raising limits for small business expensing.
Ensuring Strong Consumption
Household spending, notably on autos and housing, played a key role in restoring economic growth over the past year. The Presidents plan provides further support to keep consumption growing.
Under the plan, the marginal rate relief would be reflected in withholding schedules as soon as the act passes, so workers will see their paychecks grow. And the increased child credit would be rebated to parents in 2003, adding an extra $400 per child.
If Congress passes the Presidents plan by July, it would return $52 billion to Americans this year.
Pro-Investment, Pro-Consumer, Pro-Jobs
By focusing both on business investment and personal consumption, President Bushs Jobs and Growth Plan will help create more jobs fast.
The Council of Economic Advisers (CEA) projects that the Presidents plan will create 510,000 new jobs in the second half of 2003 and 890,000 new jobs in 2004 an increase of 1.4 million jobs in just 18 months. Private sector analyses reach similar results.
The CEA assumes Congress adopts the Presidents proposal by July of 2003. The sooner Congress acts, the more jobs the Presidents plan would help create.
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