[Blitzer:] Saying a bold plan is urgent to stimulate the economy the president today called for a ten year $674 billion tax cut. Our White House Correspondent Dana Bash is standing by with details Dana.
[Dana Bash, Cnn White House Correspondent:] Wolf, the White House says the average American will get $1,000 tax cut with this plan and they say it will create 2.1 million new jobs.
[Bash:] The president headed to the middle of the country to unveil an economic plan he says will help Middle America.
[Bush:] We will not rest until every business has a chance to grow and every person who wants to find work can find a job.
[Bash:] Mr. Bush said the economy is improving but, as he heads towards reelection, the president wants Americans to know he's doing what he can to give it a boost. The cost of his proposal is now estimated at $674 billion over ten years, eliminating the dividend income tax, the centerpiece of his plan, makes up roughly half the cost at $364 billion. Accelerating tax cuts passed in 2001 but not set to kick in until 2004 and 2006 will cost $64 billion.
[Bush:] If tax relief is good enough for Americans three years from now, it is good enough for Americans today.
[Bash:] But even Democrats who helped Mr. Bush pass those tax cuts are skeptical of his new plan.
[Sen. John Breaux , Louisiana:] Well, cutting taxes is always good politics. The question is can we also do it in a way that's also good public policy?
[Bash:] Answering criticism Mr. Bush helps the wealthy, the plan also calls for accelerating the Child Tax Credit at a cost of $91 billion, accelerating the so-called Marriage Penalty for about $58 billion, and other tax relief for businesses and individuals adding up to $93 billion all over ten years.
[Bush:] We must be more creative when we help those who have the hardest time finding work.
[Bash:] With the jobless rate at its highest level in six months, the Bush plan gives $3.6 billion to states for new reemployment accounts, which would pay for things like job training, childcare, and transportation for the unemployed. And, Wolf now comes the tough part. The president and his aides have to sell the plan. His new economic advisor Stephen Friedman heads to Wall Street to speak to folks there tomorrow, and then on Friday the vice president will speak and, of course then there's Congress, big sales job there especially in the Senate where you need 60 votes to pass anything. That means he'll need about a dozen Democrats to get this passed and that's not going to be easy Wolf.
[Blitzer:] We'll see if they can do it. Dana Bash at the White House, Dana thanks very much. And you don't need a CPA to figure out how much you'd save with the president's plan. We already did some of the math for you, so sit back and watch what happens to the bottom line. Take the median American family. It earns $66,000 a year. Bushonomics if passed by Congress begins with giving this family an immediate tax break of $100. There's an additional break that comes with the lowering of tax brackets but this median family doesn't make enough money to qualify for that break. Now to the kids, the median family has two with Bushonomics boosting the Child Tax Credit by another $800. Also under the president's plan, no more marriage penalty tax, the relief gets this family an additional $233. Add up the money and the savings for this family $1,133.00 in the new tax year. The family sees this money in their paychecks as soon as Congress signs off on the plan. But is the picture as rosy for the poor and is it perhaps even rosier for the rich? Let's turn to our CNN analyst, "Fortune" magazine editor-at-large Andy Serwer. He's joining us now live from New York. Andy, I've got some graphics. I want to go through all the specifics of the president's plan, at least some of them.
[Andy Serwer, "fortune" Magazine:] Yes.
[Blitzer:] And the Democratic alternative plan, you tell me who's going to benefit the most. Let's go through these as we can. First of all, the Bush economic plan $670 billion over ten years. Who benefits, upper income, middle income, or lower income?
[Serwer:] Well, I think that there's no question, upper income benefits. I think both the Republicans and the Democrats would agree. The Republicans, of course, say that the lower income taxpayers would benefit as well and that's very unclear because only 15 percent of all Americans own stock directly. That means that 85 percent don't. They would not benefit and, of course, those would be lower income people. However, 50 percent of all American households have stock in 401- Ks. They would benefit because companies would pay more in dividends, that way they would see more money in their 401-K. It's kind of an indirect benefit but I think it is a legitimate benefit nonetheless.
[Blitzer:] All right, well let's talk about that, upper income then benefits the most you're saying from this nearly $700 billion economic stimulus package over ten years. You hinted at the second element of the plan, the elimination of the stock dividend tax. Who would benefit the most from that?
[Serwer:] Well, again, I think that you couldn't disagree that the wealthy would benefit from that but increasingly Americans are participating in the stock market and I think that they will actually be increasingly looking towards the stock market, all Americans as they see that the chances to get tax-free income come into play. So, it could be that lower income people would benefit but I don't think they'll benefit as much as the Republicans indicate, at least initially.
[Blitzer:] So let's say upper and middle income types would benefit the most from that one. What about the increase on the Child Tax Credit?
[Serwer:] Now, I think there is something that all Americans could benefit from and actually if lower income families have more children than upper income families do and I think that statistics show that to be the case oftentimes, then lower income families would actually benefit more than higher income families there.
[Blitzer:] All right, so everyone benefits on that.
[Serwer:] Yes.
[Blitzer:] All right let's move to the next graphic.
[Serwer:] Right.
[Blitzer:] We have a graphic on the Democratic economic plan, one year as opposed to ten year, cost of $136 billion, who benefits the most?
[Serwer:] Well, you get a big bang there right away, Wolf, and I think everyone gets that. You know the question here is will it help the economy in the long run? The real game here is to create sustainable job gains. I'm not sure you do that with a one punch there but that's kind of an across-the-board one I think.
[Blitzer:] All right, so we'll say everyone on that one. What about the $300 tax rebate?
[Serwer:] Well, rebates again disproportionately would benefit lower income families because after that money means more to a lower income family than an upper income family. The question is what do you do with that money? Higher income people tend to save those types of checks, where lower income people tend to go out and spend, but again disproportionate benefit probably to lower income families.
[Blitzer:] All right, we'll put an L there; and the $31 billion that the Democrats propose handing over to the states?
[Serwer:] Well that's very interesting. You see here the states would seem to benefit more from the Democratic plan than the Republican plan, I think. That's my reading, maybe not a surprise because the Democrats are stronger in the state houses. I think that benefits lower income families and middle income families perhaps a little bit more than upper income families. The states tend to parcel that money out that way maybe more effectively.
[Blitzer:] All right, well we'll leave that one a little bit of a question mark. Andy Serwer, as usual, thanks very much for all that useful information. We'll be talking again obviously, appreciate it very much.
[Serwer:] Sure, Wolf.
[Blitzer:] Here's your chance to weigh in on this story. Our "Web Question of the Day" is this: what impact would the Bush plan have on the economy, help, hurt, or no impact? We'll have the results later in this broadcast. Vote at cnn.comwolf. While you're there, I'd like to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online columnwolf. A national alert and then a major retraction, why was the FBI so quick to warn the nation about a threat that apparently didn't exist? A closer look when we come back? Plus, from fame to misfortune, find out why this former soap star is suing ABC over his drug addiction. And how one woman lost a finger after a brief encounter with the police; but first, a look at some news making "Headlines Around the World." Venezuelan dissidents marched on the offices of the Federal Tax Agency. They're urging citizens to stop paying taxes in a bid to force the ouster of President Hugo Chavez. Grim memories. Cambodia is marking the 24th anniversary of the fall of the Khymer Rouge. The regime is blamed for an estimate 1.7 million deaths. Cambodian and U.N. negotiators are holding talks this week on the possibility of setting up a war crimes tribunal. Going for the gold. An alleged Russian mobster has been ordered to be extradited to the United States. He's accused of fixing the competition at last year's Salt Lake City Olympics to get a gold medal awarded to a Russian figure skating team. Return of the Turners. Britain's Tate Gallery has recovered two 19th century masterpieces stolen eight years ago. The paintings are shade and darkness and a companion piece, light and color. Both were painted by 19th century impressionist, J.M.W. Turner. Orthodox Christmas. Although much of the world celebrated Christmas two weeks ago, today is Christmas Eve for many Eastern Orthodox Christians. Among the sites of major observances, Bethlehem, Istanbul and Moscow. Shock opera. Much to the dismay of high culture purists, they're holding auditions in Britain for an opera based on Jerry Springer's TV show. Some say the program's lurid subject matter is better suited to the Grand Ole Opry than opera. But in view of the fistfights on the TV show, the Jerry Springer Opera may have a ready-made slogan, "It's Not Over Until The Fat Lady Swings." And that's our look around the world.