Bush asks Congress $140 billion economic package

President George W. Bush on Friday called for a package of tax cuts and other measures totaling around $140 billion to shore up the fragile U.S. economy.

"This growth package must be built on broad-based tax relief that will directly affect economic growth and not the kind of spending projects that would have little immediate impact on our economy," Bush told reporters at the White House.

"This growth package must be temporary and take effect right away so we can get help to our economy when it needs it most," he said.

Amid bleak reports on retail sales and other data suggesting a possible recession, Bush and the Democratic-led Congress are negotiating to see if they can reach common ground on a plan to shore up growth.

Under consideration in the talks are ideas like tax rebates, incentives for businesses and extensions of unemployment insurance.

Bush's focus on broad tax cuts may be a sticking point in talks with Democrats who want any plan to emphasize help to low- and moderate-income families.

The two sides are still smarting over bitterly fought battles last year over the budget, health care and the Iraq war.

But there is a consensus that the economy, hit by a housing crisis, credit crunch and surging oil prices, is in need of a rescue.

The president said the package should total around 1 percent of gross domestic product. With the size of the economy now at $14 trillion, that is equivalent to about $140 billion.

The debate over a stimulus package has roiled the campaign trail, where candidates are vying to succeed Bush in the Nov. 4 election.

All three major Democratic candidates -- Sen. Hillary Clinton, Sen. Barack Obama and former Sen. John Edwards -- have offered plans with spending and tax-cut ideas.

Republican Sen. John McCain on Thursday laid out a proposal for cuts in corporate tax rates and incentives for companies to invest in new equipment and research. One of his main Republican rivals, former Massachusetts Gov. Mitt Romney, is also getting set to unveil a plan.