Senate Democrats offer mixed reception for Bush economic plan

by Genaro C. Armas
The Associated Press

WASHINGTON - Even before President Bush details his economic plan, Senate Democrats on yesterday sharpened their criticism, previewing the battle ahead in Congress on how best to promote growth and jobs.

Democrats said they wanted to help the middle class while the president's proposal, to be made public in a speech tomorrow in Chicago, would benefit the wealthy and corporations. The White House says Bush was assembling a plan to strengthen growth, create jobs and help people who are in need.

"We should do something to take care of people who work for corporations, not help the corporations necessarily," the second-ranking Senate Democrat, Harry Reid of Nevada, said on NBC's "Meet the Press."

Bush's plan, which administration officials say could cost $600 billion over 10 years, likely will include an extension of unemployment benefits; an acceleration of tax cuts Congress approved in 2001; a cut in dividend taxes by 50 percent or more; and tax incentives to prompt more spending by businesses.

Continuing the criticism from leading Democrats over the past few days, Reid said many elements of Bush's plan, such as a cut in the dividend tax, would largely ignore the poor and middle class.

And Sen. John Edwards, D-N.C., a 2004 presidential candidate, said on ABC's "This Week" that "if this is what he thinks is going to help regular people in times of an economic downturn, it just shows how out of touch he is."

But some expected elements of the plan would win bipartisan support, said Sen. Evan Bayh, D-Ind. He cited assistance for states to offset budget deficits and targeted tax cuts that help the middle class.

Among tax relief accelerations under consideration by Bush are expanding the child tax credit to $1,000 sooner than now called for and providing relief from the marriage penalty paid by two-earner couples more quickly than in current law.

"You may see some fine-tuning of the president's program to make it more effective, to actually get more bang for the buck," Bayh said on CNN's "Late Edition."

In the president's defense, Sen. Don Nickles of Oklahoma, said cutting dividend taxes, helping corporations and stimulating investment could boost 401(k) retirement plans and infuse more money into companies that could then be used to hire more workers.

Nickles said he hoped the Senate would address the issue of extending unemployment benefits as early as tomorrow, when they return to session.