Numbers.(Brief Article)(Statistical Data Included)(Illustration)

0 Comments | Report Newsmagazine, The, March, 2001 | by Byfield, Mike

THE ECONOMY

U.S. President George W. Bush has proposed a US$1.6-trillion tax cut over 10 years. Although Federal Reserve Board chairman Alan Greenspan says the U.S. economy is not in recession, he acknowledges that it is very shaky and recent layoffs have been severe. This weakness increases congressional support for a deep tax break, albeit possibly not as much as Mr. Bush wants. He'd peg the federal tax rate at 10% for incomes up to US$40,000. In Canada, that level of income qualified until recently for Ottawa's highest tax bracket; its lowest tax rate is currently 16%.

Nortel Networks plans to cut 10,000 jobs in 2001, 12% of its current payroll, because the U.S. economic downturn appears more serious than expected. The news caused Nortel shares to...