Washington - US President George W Bush called Monday for Congress to pass a robust economic stimulus package as quickly as possible to help head off a possible recession. "In the long run, Americans can be confident about our economic growth. But in the short run, we can all see that growth is slowing," Bush said in his annual State of the Union speech.
Bush and the opposition Democrat-controlled House of Representatives have agreed on a 150-billion-dollar short-term stimulus package that includes 100 billion dollars in tax rebates for individuals and 50 billion dollars in tax incentives for businesses, but the plan could face difficulties in the US Senate, which is seeking to expand the plan.
Bush urged the Senate to avoid the temptation to "load up" the already agreed package with additional measures.
"That would delay or derail it, and neither option is acceptable," he said. "This Congress must pass it as soon as possible."
Economists have said that any temporary tax relief would have to reach consumers quickly to offset a recession. The US economy has been bogged down by the crisis in the housing market along with a spike in unemployment and high energy prices.
Bush said that Congress should allow states to issue tax-free bonds that would help families refinance their home mortgages, and should reform federal lenders Fannie Mae and Freddie Mac, both of which have suffered heavy losses in the last six months along with private US banks.
"These are difficult times for many American families, and by taking these steps, we can help more of them keep their homes," Bush said.
An uptick in home foreclosures by subprime mortgage holders has been a key reason for an economic slowdown that has caused jitters in financial markets around the world. The Federal Reserve has predicted that the economy will grow more slowly in 2008 than in previous years and has begun lowering interest rates to encourage investment.
He called on Congress to pass free-trade deals with Colombia and South Korea, telling legislators that the growth of the sputtering US economy was dependent on selling goods abroad.
Bush urged Congress to make permanent a set of controversial tax cuts passed early in his seven years in office.
Democrats have vowed to repeal the tax cuts, which they say favour the wealthiest Americans, but the president said a failure to renew the cuts would have the effect of a massive tax increase.
"Some in Washington argue that letting tax relief expire is not a tax increase. Try explaining that to 116 million American taxpayers who would see their taxes rise by an average of 1,800 dollars," Bush said.
