Bush's Economic Policy Proposals example essay topic

President George W. Bush delivered his "State of the Union" address in January 2003 to the members of Congress and the United States public. Within his address, he proposed his ideas to reform and improve the economy. In the previous year, the government attempted to bring the economy out of recession by instating the largest tax relief seen in a generation. His present goals have the purpose to further strengthen America's economy. His first proposal was to set all the income tax reductions for 2004 and 2006 as effective and permanent this year.

He stated that as soon as he signs this bill, the extra money would begin to show up in workers' paychecks. Bush also promises that he would reduce the marriage penalty and raise the child credit to $1,000 immediately rather than gradually. Bush believes that when Americans have more money to spend and invest as a result of less taxation, the economy will grow, which will in turn create jobs. "We must have an economy that grows fast enough to employ every man and woman who seeks a job. After recession, terrorist attacks, corporate scandals and stock market declines, our economy is recovering... yet it's not growing fast enough, or strongly enough. With unemployment rising, our nation needs more small businesses to open, more companies to invest and expand, more employers to put up the sign that says, 'Help Wanted.

' " (George W. Bush, "State of the Union"). Bush is proposing this tax relief for all Americans who pay income taxes to help the economy immediately. Since Congress has already passed the reductions for the future years, Bush believes it could be even better to have them in effect today. Another proposal was to only tax a company on its profits, not the shareholders. By ending double taxation of dividends, he hopes to increase investor confidence. Increased investments, along with lower taxes are meant to help the economy expand with more jobs.

Bush's second proposal was for "high quality, affordable health care for all Americans". His first idea for reform is within Medicare. He believes that giving seniors increased control over their choice of health plan will give them a renewed sense of confidence in the system. His budget will provide an additional $400 billion for the reformation and strengthening of Medicare. President Bush and his Republican supporters are very optimistic about the future of his economic policy proposals. He seems to be very confident about our economy in general, and America's ability to pull it out of its recession.

"I am positive about... our economy. I feel very optimistic about it, because I look at the facts". (President George W. Bush, Aug. 5, 2002). Despite President Bush's optimism concerning his new economic proposals, the democrats in the Senate weren't quite as impressed. The Democrats voted to cut his proposed tax cut by more than half.

The Congressional Budget Office says that his plan would have "virtually no effect on the size of the economy". Senate defeated Bush's proposal with the votes of all 47 Democratic Senators, along with 3 Republican Senators. They voted to cut his $726 billion plan to $350 billion. In spite of this defeat, there is still a push for the all of the plan's aspects to be passed. Ari Fleischer has used to military conflict in Iraq to sell the plan, stating that it would ensure jobs for the military to come home to at the end of the war. Yet, the Congressional Board Office still holds to the fact that his proposals would only raise or lower the level of output by less than 1% from 2004-2013.

With all of these contradicting arguments, it will be interesting to see what will eventually come of Bush's economic policy proposals.