Bush Signs $168 Billion Measure Designed to Stimulate Economy

Bush Signs $168 Billion Measure Designed to Stimulate Economy

Feb. 13 (Bloomberg) -- President George W. Bush signed into law today a $168 billion economic stimulus package designed to avoid a recession by boosting spending among consumers and businesses.

U.S. economic growth ``has clearly slowed,'' Bush said in a ceremony at the White House, surrounded by congressional Democrats and Republicans who put aside differences to pass the measure last week. ``The bill I'm signing today is large enough to have an impact,'' Bush said.

Rebate checks will be sent to more than 130 million Americans beginning in May. Those eligible for payments include 20 million senior citizens and 250,000 disabled veterans.

The stimulus package would cost the Treasury about $151.7 billion this year and an additional $16.3 billion next year, according to the Joint Committee on Taxation. The measure also gives tax incentives to businesses to invest in new equipment.

Economic growth in the fourth quarter slowed to a 0.6 percent annualized pace, and U.S. employers cut jobs in January for the first time in four years, raising concern about a possible recession.

Under the rebate program, people will get a check of up to $600 for individuals and $1,200 for couples, plus $300 for each child. Rebate checks for $300 would be sent to those whose Social Security benefits, veterans' disability payments and earned income that totaled at least $3,000 last year.

The rebates would be phased out for individuals earning more than $75,000 or couples earning more than $150,000.

BLOOMBERG