President-Elect George W. Bush wants every American to have a tax cut. Bush is proposing a $1.3 trillion dollar tax cut. But, will it really happen, and what effect will it have on a struggling economy?
One of those people watching the Congress very closely is D'Auby Shiel. She is the president and CEO of Coast Community Bank. Her business is tied directly the how the economy is doing. She hopes Congress does approve a major tax cut, and does it quickly.
"When we return money to people who earn it to spend any way they choose, then the good of the whole economy occurs and it occurs dramatically," Shiel says. "I think we know how to spend our money."
Many economists fear the nation is on the brink of a recession, and that is reflected in part on Wall Street. That's why the Federal Reserve cut interest rates last week, and probably will again soon. Shiel says the rate cut helps, but a tax cut has a more immediate effect.
"History has proven every time there is a tax cut, there is a major positive impact on the economy."
We also asked a few coast residents how they feel the prospects of having fewer taxes taken out of their paycheck. Of course, most like the idea, but many were skeptical it will happen.
One young woman said she is on a budget, and finds it difficult to make ends meet, when her $1,200 check, ends up being $800 after taxes are taken out. Another person told us she thinks Congress and the president-elect will find some way to water down the proposed cut.
D'Auby Schiel also says she worries it might be another weakened version of a tax cut, but is hopeful this time, it will be the real thing.
"If everybody can get on board, and let this tax cut come through then we will see a good sound economy and no recession."