The 30-Second Guide to Bush's Economic Plan
By Penelope Wang

(MONEY Magazine) – 1 Make the 2001 and 2003 tax cuts permanent. The President's tax cuts reduced marginal income tax rates, raised the child tax credit and reduced the tax on most dividends, among other moves. The cuts are now scheduled to begin expiring in 2005 and would disappear by 2011.

2 Shrink the swelling deficit. Bush wants to halve the annual deficit within five years through faster economic growth and reduced spending. Meanwhile, the White House recently had to raise its estimated 2004 deficit to more than $520 billion.

3 Expand health care, job training. In addition to his Lifetime Savings Account and Retirement Savings Account (see the story at left), Bush wants to expand the Health Care Savings Account that's part of the new Medicare law with a tax break for buyers of high-deductible health insurance. Also proposed: $500 million for job training. --PENELOPE WANG