Bush pushes for more tax cuts

President George W Bush has asked members of Congress to quickly implement an additional $60bn worth of tax cuts and credits in order to stimulate the US economy following the 11 September terror attacks.

"I propose that the United States Congress as quickly as possible pass tax relief equal to or a little bit greater than the money we have already appropriated," Mr Bush said.

Mr Bush called on Congress to provide tax relief by accelerating tax cuts he has already signed into law that are not scheduled to take effect until 2004.

He also said low and moderate-income workers should be targeted for a cut in taxes.

Business measures

On the business side, Mr Bush said a revision should be made to allow for enhanced expensing of capital expenditures and eliminating the alternative minimum tax.

Speaking in the White House rose garden, Mr Bush said congress ought to come together quickly and pass the proposals he outlined.

The president said the fundamentals of the economy are sound and can be revived through passage of a stimulus package.

Employment falls

Earlier in the day new jobs figures had shown that the number of people employed in the US fell last month by the largest figure for 10 years.

Employment dropped across all sectors of the economy, with both manufacturing and services suffering.

Some experts are not sure whether tax cuts will give the quick boost needed.

Speaking on the BBC's World Business Report, Richard Curtin, director of the University of Michigan's Surveys of Consumers, said he doubted they would provide an instant cure.

"I think that when you do cut taxes by substantial amounts, as are bring talked about, some of it will wind up in spending and will help the economy, but the pace or the timing of that help will be rather slow and the pace rather sluggish," he said.

"It will prove to be a less effective means of stimulating the economy than they might have hoped."

US stock markets responded positively to President Bush's words, reversing losses and edging higher.

The Dow Jones Industrial Average eventually closed up 58.89 points at 9119.77.