Prospects for tax cuts and new charitable incentives are gaining strength in the face of growing concerns about a recession and mounting surpluses, The Wall Street Journal reported Jan. 3.
President-elect George W. Bush, who on Wednesday convened a two-day conference in Austin on the economy, is expected to propose sweeping tax relief, including cuts in income-tax rates, the Journal said.
“With a hard landing or a recession, voter tolerance for gridlock will drop, and neither party will want to be seen as blockingn economic relief,” Tom Gallagher of ISI Group, a research and investment firm, told the Journal.
High priorities for many lawmakers include marriage-penalty relief and repeal or at least reductions in estate and gift taxes, as well as new retirement savings incentives, the Journal said.
Bush also is likely to propose new incentives to contribute to charity.