Bush Sure of Tax Cuts Passage

President Bush yesterday expressed confidence that Congress will pass the bulk of his $695bn (£438bn) tax cut plan designed to revive the faltering US economy and prevent voters from turning their backs on the Republicans.

The President made the comments amid dogged opposition to the plans that will leave the US economy facing record deficits.

Treasury secretary John Snow has been dispatched to Capitol Hill this week for a series of meetings with politicians to win over doubters. Despite the president's positive comments, few believe that the plans will have an easy passage - with the outcome largely dependent on whether the president can sway sentiment with a brief and successful campaign in Iraq.

There is mounting speculation that Federal Reserve chairman Alan Greenspan, who questioned the need for a stimulus package two weeks ago, could find himself out in the cold because of his comments. He urged the administration not to "let budget deficits get out of hand".

After presenting the details of his stimulus package to a gathering of the nation's state governors at the White House, the president said: "This is the plan I am asking Congress to pass and I believe we are going to get a lot of it passed. I am optimistic about it. Jobs are on my mind and I am going to work hard to get Congress to pass the package."

He said the deficits facing the US economy were not because of tax cuts but "because we went through a recession and we're at war". The plan needs approval from the both houses of Congress, which are now under Republican control.

The White House is aware of a growing disaffection among Americans concerned about the economy. President Bush highlighted a private sector forecast predicting that the US economy would grow by 3.3% this year if the plan is passed.

But that bullish view is rare. Earlier this month, 400 economists took out a full-page advertisement in the New York Times condemning the plans as folly.