Daily Tax Update - January 22, 2008

TREASURY SECRETARY OPTIMISTIC ECONOMIC STIMULUS PACKAGE CAN BE ENACTED SOON:  Treasury Secretary Henry Paulson expressed confidence today that an economic stimulus plan can be enacted this winter. Paulson said, “Time is of the essence, and the President stands ready to work on a bipartisan basis to enact economic growth legislation as soon as possible. I am optimistic that we can find common ground and get this done long before winter turns to spring. By working together, we can disprove the old Washington axiom that partisan politics prevents most short-term growth packages from being enacted fast enough to do any good.” Paulson did not offer any new details about what would be in the stimulus package.

  • Congressional leaders and the Administration hope to make an announcement on a mutually agreeable economic stimulus package before President Bush's State of the Union address on January 28th. Senate Majority Leader Harry Reid (D-NV) said that stimulus package should be completed by the Presidents’ Day recess which begins February 16th.
  • Today, the White House suggested that President Bush is open to a larger economic stimulus package than the $145 billion he called for last week. The President and congressional leaders will meet this afternoon to continue their discussions about the stimulus package.
  • Today, the Joint Committee on Taxation issued a list of options that Congress could consider for an economic stimulus package. The list includes all of the ideas being considered in the current stimulus discussions and offers suggestions for who should receive rebates and how to overcome administrative challenges.

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