Bush presses Congress to approve final tax cut this week, citing weak economy

WASHINGTON (AFX) - President George Bush pressed Congress to agree on and pass a final tax cut bill this week, citing a weak economy.

"The economy needs a shot in the arm. So I call on the House and the Senate to reach an agreement on the final tax relief package this week," Bush said at the White House event.

"Our economy cannot afford any further delays," he said.

The Senate earlier approved an 11-year, 1.35 trln usd tax cut, but only after two days of delay while mainly Democrat Senators proposed dozens of amendments to the bill.

Republicans had aimed to get final enactment of the tax cut by the 

Memorial Day holiday this weekend.

Analysts in Washington contacted by AFX News cautioned that a final compromise could take a bit longer, adding that they anticipated the ultimate bill will be close to the Senate version.

The House has passed legislation based on Bush's ten-year, 1.6 trln usd proposal, including reducing the top income tax rate to 33 pct from 39.6 pct.

The Senate version only lowers the top rate to 36 pct.

Separately, analysts said the prospect of Democrats winning a majority in the Senate if Republican Senator James Jeffords switches his affiliation is not likely to impact the final passage of the tax cut.

"It looks like it's too late now" to have a critical impact, said Chris Edwards, fiscal policy director at the Cato Institute.

The Senate's bill won approval of 12 Democrats, and was crafted in part by the senior Senate Finance Committee Democrat, Max Baucus.

"The votes aren't going to change" as a result of the possible development, said Ethan Siegal, political analyst at the Washington Exchange.

Thomas Daschle, who would become Senate majority leader if he gains Jeffords' vote, is unlikely to undermine a senior Democrat senator such as Baucus, said Gregory Valliere, fiscal analyst at Schwab Washington Research 

Group.

Meanwhile, Republican Senator Orrin Hatch, who chairs the Judiciary Committee, said the House-Senate conference committee would begin work right away, and could wrap up negotiations on the tax cut as early as tomorrow.

"They've indicated they are going to go (to work) tonight," Hatch told reporters following the bill's passage in the Senate.

When asked if the House and Senate negotiators could come to an agreement before Jeffords makes an announcement regarding his political future, Hatch replied, "that's a possibility."

Jeffords is slated to make an announcement on his plans tomorrow in Vermont.

Related stock : (NIL)