Nevada Republicans hail Bush proposal

Benjamin Grove

Wednesday, Jan. 8, 2003 | 9:28 a.m.

WASHINGTON -- Nevada Republicans in Congress hailed the economic plan President Bush unveiled Tuesday as the best plan for Nevadans. Democrats said their plan was better, as a new session of Congress -- and a war of words over dueling economic proposals -- got under way.

Bush's plan would speed up tax relief slated for implementation later in the decade for married couples, families with children and small businesses, GOP officials said.

According to figures from Rep. Jim Gibbons, R-Nev., this year under the Bush plan:

"If you want economic stimulus, you put money back in the hands of taxpayers," Gibbons said.

Gibbons said the GOP plan creates jobs by offering corporations tax breaks, which can be plowed back into business expansions and job growth. Among the highlights of the Bush plan is elimination of a tax paid by corporations on dividends paid to shareholders, Gibbons said. That money is "double-taxed," first as income, then again as a paid dividend, he said.

But Sen. Harry Reid, D-Nev., blasted the GOP plan. He said the bulk -- roughly $500 billion -- of the $700 billion Bush plan would benefit the wealthy and corporate America.

"The Bush plan does nothing for Nevadans," Reid said.

Reid scoffed at Bush's claim that his plan would give a typical family of four earning $39,000 would receive a total $1,1000 in tax relief.

"I don't know how they came up with that," Reid said. "It's the most blatant example of statistical manipulation -- it just isn't there."

Reid said Bush's plan fails to: offer short-term stimulus to the economy; offer significant middle-class tax relief; and offer a smart approach to deficit reduction.

Democrats are bracing for battle in the new GOP-controlled Congress, Reid said.

"We're not going to roll over and play dead, I can tell you that," Reid said.

In other action Tuesday, the first day of the 108th Congress, the Senate approved a plan to continue offering 13 weeks of federal unemployment benefits to people who have exhausted typical 26-week state benefits. The House today was expected to pass the legislation, which President Bush supports.

As many as 6,000 jobless Nevadans could benefit in the next five months.

About 300 unemployed people exhaust their state benefits each week. Assuming those people did not get jobs, as many as 6,000 additional people could obtain federal benefits between now and May, when the congressional offer expires.

Congress is mulling the renewal of the federal jobless benefit because it expired Dec. 28, so people who exhausted state benefits after that date would not qualify unless Congress approves the extension.

Fred Suwe, assistant director of the Nevada Division of Employment Security, said 4,000 people in the state were drawing federal jobless benefits offered before Dec. 28.

Nevada has 33,000 people drawing state benefits, compared to 42,000 last year. Sun reporter

Cy Ryan contributed to this report.