President-elect Barack Obama has demanded bold action on his near $800 billion stimulus plan, warning Congress would send the US economy into an even deeper hole if it failed to act swiftly.
Obama touted a sweetener of $300 billion in tax cuts yesterday in an apparent bid for opposition Republican support, as he plunged into the fray on his first day since moving to Washington, two weeks before his inauguration.
'The most important message today is that the situation is getting worse, we've got to act boldly, and we've got to act swiftly. We cannot delay,' said Obama, who met leaders from both sides of the political divide on Capitol Hill.
'It's clear that we have to act and we have to act now to address this crisis and break the momentum of the recession, or the next few years could be dramatically worse,' he said.
The president-elect's aides divulged details of the massive scope of the package, his opening political gambit as he takes office amid the worst global economic crisis for over 70 years.
Obama will propose tax cuts totalling $300 billion over two years, or around 40% of a package that could top $775 billion, a source said on condition of anonymity.
The president-elect has said the stimulus will include a multi-billion-dollar programme of public works, including road and bridge repairs, renovating school classrooms and aid to cash-strapped states.
The plan is designed to create or preserve three million jobs over three years, includes tax and spending incentives for renewable energy production and provides extra health care benefits for needy Americans.
US citizens can expect immediate tax relief of around $500 for individuals and $1,000 for couples under the plan, and some businesses would be able to write off last year's losses against their tax return.
