The 10-year economic stimulus package - worth $674bn - is expected to concentrate on tax cuts for investors, in order to rekindle stock market investment.

In contrast, Democrats are proposing a $136bn injection into the economy through tax rebates this year, along with extended benefits to the unemployed.

The debate over economic proposals comes amidst tentative signs of improvement in the US economy.

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.

Do you think Bush's plan is just a tax cut for the rich? Or is this plan the key to improving US economic performance?

This Talking Point has now closed. Read a selection of your comments below.

The US stock market does not look likely to rise sharply any time soon Mark, USA

Markets hate uncertainty. In the face of war looming in Iraq, no visible progress to reduce the threat of terrorist attacks on America by al-Qaeda, and mounting tension over nuclear weapons proliferation by North Korea, the US stock market does not look likely to rise sharply any time soon. Unfortunately, this causes American consumers already heavily in debt and who drive two thirds of the American economy to feel poor and not spend heavily keeping the overall economy sluggish. Bush's policy does little to change that.
Mark, USA

Bush's business degree must have lacked in the relationship between bonds and stocks. If you give huge cuts on stock dividends the investment money will go there at the expense of municipal and state bonds. Thanks a whole lot Georgie - your state governments are already haemorrhaging and your response is an anticoagulant.
Ron, USA

Glad to say I just got my citizenship today and can add my vote to get this pratt out of office. No it won't work. The rich just keep getting richer
Alison Nelson, US

Of course any tax cut will help the rich. The lower income brackets are net recipients of tax money so a tax cut has no benefit to them. JFK reduced taxes when he was in office. Reagan reduced taxes and that kicked off the largest growth spurt since WWII. If you really want to see the economy grow, then reduce the capital gains tax rate - that will really get the funds flowing to EVERYONE.
David Marek, USA

Wall Street loves what Bush does Bob, US

The success of the 1990s was largely based on Reaganomics. Wall Street loves what Bush does and that's where all of our retirement and mutual funds are. If anyone looks at the American tax code, the poor (people making under $30k per year) are not paying any taxes. That is why Bush is not cutting their taxes. The American dream is to be rich, and when I get there I definitely don't want the huge taxes the rich are paying as a penalty of their success.
Bob, US

Can someone please outline how the incredibly small percentage of people who are actually wealthy enough to make money off of this new plan will boost the economy with a relatively small amount of money like $100k? Give me a break. Are the handful of people who get this money going to move the behemoth multi-trillion dollar market with "all that money"?
Isladar, USA

Let's be honest: Nothing is going to work until interest rates rise and debt is acknowledged and written off. Currently we are way off!
Steve, Singapore

I commend Bush for helping all of us out by cutting taxes Cameron, USA

Being a tax paying college student, I commend Bush for helping all of us out by cutting taxes. We all pay taxes, and most families rely on stocks for additional income. So how could anyone intelligently argue that this will only help the rich get richer? Would we rather listen to the Democrats and raise taxes? That would just add an extra burden on all of us!
Matt, USA

Trickle down economics looks good on paper, but as history and current human nature shows, the wealth tends to stay with the wealthy. This President is destroying us on multiple fronts and continues to bluster his way around like a bull in a china shop.
Cameron, USA

First of all, Bush is not an economist. He's a puppet for corporate power. This plan will only worsen the divide between the rich and poor. Most people in the US have stocks only in their retirement funds and won't be receiving ANY benefit from this package. However, those with robust portfolios (i.e. those who don't need any more money) will get richer.
Alexander, USA

I like keeping a strong military, I like concentrating on homeland security. Up to now, I was Republican in my thinking but this time, I do not agree with the latest economic stimulus package. I am not swaying 100% to the Democratic way of thinking but I do think middle income Americans bear the burden and lower income Americans always need help. Perhaps a flat tax should be taken more seriously.
Brian, USA

Bush's previous economic stimulus package proved to be abortive and he is going about the same way that has failed the American economy. We're getting deeper into debt every year he is in office. One would think he would learn off his Republican predecessor (his father) that trickle down economics simply just doesn't work.
Jeremy Duncan, USA

The proposed tax cuts will only lead to a reduction in social programmes for the poor Somu, USA

The trickle down economy via tax cuts to the wealthy never worked before. Clintonomics saw economic growth with budget surplus. The current US budget deficit and the proposed tax cuts will only lead to a reduction in social programmes for the poor and the needy.
Somu, USA

Bush's plan most certainly will not work. He's typical - he caters to the rich. It's the poorest people who need the money the most and because they're lacking economically, they will be most likely to spend it. The rich won't spend the money because there is little that they need.
Colette, USA

I guess I understand the principle of tax breaks for businesses leading to bigger bottom lines and more hiring etc. The only problem is the deficit seems to lessen the value of the dollar. It's impossible to forecast which actions are going to create confidence for investors or increase consumer spending. One thing is for certain, the $300 rebate most Americans receive is nothing. I wish the Republicans wouldn't pretend it was important.
Kevin Baca, USA

Americans are being ransacked by the government's greed BLJ, USA

Rich or poor, Americans are being ransacked by the government's greed. Forget tax breaks, we need a tax revolt, a modern-day Boston Tea Party. We revolted against King George III when he wasn't taxing us at nearly the rate we're being taxed at now. The middle class in America is giving boatloads of money to the government, and the rich are giving aircraft carriers full.

The American people are being screwed! We should not be paying more than five percent in taxes. All the morons who complain about the "rich" getting the biggest break are looking at it the wrong way. Who made government God to take any of our money? It's ours! We earned it. Any tax break is not good enough. Ever!
BLJ, USA

Mr Bush is doing the best thing possible at the moment - tax cuts for everyone, not just for the rich, nor just for the poor. Such financial relief is always good for the economy - the wealthier invest more and the less wealthy consume more. At a time of war, Mr Bush couldn't afford to play around with the economy even if he wanted to, as is being falsely claimed. He needs the American public's support and approval if he is planning on winning and on being re-elected.
Bernd R, Germany

The rich have not stolen their wealth so why should they be penalised for being successful? A Brooks, USA

Every time taxes have been reduced, revenues go up. Government statistics prove that. The rich have not stolen their wealth so why should they be penalised for being successful? I am not in the wealthy league by the way. None of the whining rich liberals ever volunteer to send extra money to the government. They join the Democratic Party and expect the rest of us to pay the taxes.
A Brooks, USA

Yes Bush's actions are ideologically based and it happens to be an ideology I support; small non-interventionist government, free markets with minimal regulation and free trade are the only way forward and I for my part hope the new Kenyan president takes note.

However his ideology is tempered when it comes to things like defence where Republican obsession with militarism makes them and plough insane amounts of money into weaponry and forget their commitment to minimal government. If Bush can apply the same cost cutting principles to defence, taxes can be cut even further and he should begin by eliminating income taxes for the bottom 25% of Americans and abolishing sales taxes and VAT on basic medicines, contraceptives and the foodstuffs of the poor. Now that is good economics with a humane agenda.
Amoroso Gombe, Kenya

He's obligated to put money back into the pockets of the people who put money into his pockets David, USA

Of course it's a tax cut for the rich. But Bush, like most Republicans, would have you believe that this sort of strategy will create jobs through trickle-down economics. But, when the CEOs are making billions of dollars, the money's not trickling down, and Bush knows that, but he's obligated to put money back into the pockets of the people who put money into his pockets.
David, USA

This is an over the top tax cut for those who don't need it. Trickle down economics are a failure. So far he's managed to ram us back into deficit mode a la Reagan, but the difference is at least Reagan brought about the end of the cold war.
Jack H., USA

There is no doubt that the US economy is in the doldrums. The Republicans always want to stimulate the economy in a way to benefit the most well off in society. There is nothing wrong with being wealthy, but the wealthy do not need help from the government! They should focus instead on income tax cuts for low to middle income earners. Tax cuts on dividends and capital gains only really benefit the wealthy. While it is true that a large percentage of adults in the US now own stocks, the vast majority of this is locked away in pension plans like the 401k that cannot be touched until you are 65. Thus I cannot see this boosting the economy much at all.
Jonathan Michaud, US (UK ex-pat)

Look at past performance for tax cuts. Without exception they boost the economy. As far as this being a tax cut for the rich, percentage wise this is a tax cut aimed at the poor. Because the wealthier taxpayers will receive a larger cut means nothing. Look at the percentages. All the Democratic party ever wants to do is raise taxes. They resist lowering taxes at all cost, throwing money at social problems and thinking that it's solving problems. It only creates dependency on a system that is supposed to be designed to do the opposite. Tax cuts are the only way to right the ship, economically and socially.
Vince M., U.S.A.

This is simply another giveaway to the ultra rich, no matter how the commentators and Bush himself try to spin it. This is no longer "conservative" versus "liberal." The whole focus of this administration has been on their own agenda, not on the welfare or the wishes of American citizens. It's tragic to read of British and French soldiers being readied for this absolute folly of a war.
Mary Ellen Carew, USA

Bush is listening more to special interest groups than to the economists who really understand the futility of his plan Paul, USA

Bush is listening more to special interest groups than to the economists who really understand the futility of his plan. Bush's plan is more of the same old trickle down economics. Give more to the rich and to businesses and it will eventually find its way down to the rest. It doesn't work and it will take yet another recession for them to figure it out.
Paul, USA

The Bush economic plan calls for tax cuts for everyone as well as the elimination of tax on investment dividends. Tax cuts across class lines was an idea championed by President John F. Kennedy. The Democrat party abandoned it years ago - pity. As a middle class wage earner, I invest only a small sum, but still appreciate the incentive to boost investments, and thus economic activity. A more active economy will benefit all.
James, US

Nobody can possibly know what effects are in store until the economy either tanks or takes off, but it certainly appears to be a tax cut for the well-heeled. Such amorphous benefits won't rekindle any stock market investments until matters involving Iraq, not to mention al Qaeda, are resolved.
Chris, US

It should be obvious by now that absolutely nothing the Bush administration does is for the good of the American people. Everything is designed so that the rich get richer, and the big corporations who are really in charge of America gain even more control. Time for a US regime change.
Michael Chevalier, Canada

This is a typical Republican "trickle-down" economic plan that could work after a while. As usual, the GOP is keeping its hands out of social welfare, letting the common American fend for himself. Soon, war will eclipse economic planning, and Bush will be able to accomplish his own agenda.
Chris, New York, USA

Bush's plan is more about his ideological commitments to reducing the size of the state than any kind of short term stimulus. A Level economics tells us that fiscal policy is imprecise and unpredictable in the short run. Anyway, the Fed's twelve interest rate cuts last year will have more of an effect on the US economy than the White House plans, although you can bet Mr Bush will take full credit if the US economy does recover in 2003.
James Gumbley, UK