Democrat leaders have criticised President George W Bush's expected financial package for the US economy as financially irresponsible and "an illusion" designed to favour the rich.

President Bush is due to announce a $600bn economic plan on Tuesday in an attempt to boost the US's sluggish economy.

This [proposed Democrat] package... is short term stimulus, long term balance John Spratt, Democrat

But Democrat leaders in the House of Representatives called for a different set of measures which they said would deliver better and faster results.

"What we've done is design a package that is frontloaded and fast acting," said Rep. John Spratt, a Democrat from South Carolina.

Excessive?

President Bush's 10-year plan economic stimulus package is expected to concentrate on tax cuts for investors, in order to rekindle stock market investment.

And with Republicans controlling the House, Senate and the White House, there is little chance that any counter-offer from Democrats will be made law.

But Mr Spratt said the Democrats were proposing a $136bn injection into the economy through tax rebates this year, along with extended benefits to the unemployed.

"We have a theme to this package. It is short term stimulus, long term balance," he said.

Democrats have argued that President Bush is playing on the weak economy in order to introduce tax cuts for the wealthy, despite the potentially high costs of a possible war with Iraq.

Business aid

Instead, the Democrats have argued for increased investment write-offs for small businesses, help with the rising costs of terrorism insurance and security, and financial help for poorer states.

The Bush plan was also expected to include $10bn in "fiscal relief" for states in financial difficulty, congressional sources said.

Incoming House Democratic leader Nancy Pelosi described President Bush's overall plan as "an illusion" because it served only those with substantial wealth.

$50 fillip?

President Bush said on Monday: "I am concerned about all people.

"We want to encourage investment activity. Investment means jobs."

The economic package is expected to include tax cuts on dividends to encourage renewed equity investment and further business tax changes.

Democrats countered that 25% of the proposed dividend tax break would benefit people with income of more than $1m a year while the great majority of America's small shareholders would be better off by less than $50.

President Bush is expected to announce the package at 1820 GMT.