As the presidential candidates race to release economic stimulus plans the President and the Congress appear to be moving toward passing legislation. A major obstacle both for the Democratic candidates and the Democratic Congress were “pay-as-you-go” rules implemented after taking charge. Economic stimulus, unlike many other programs, isn’t usually seen as needing to be paid for in the short term. Congress promised it wouldn’t pass any legislation it didn’t have a clear plan on funding but with the word “Recession” being thrown around, they seem ready for a new approach.

The solution? Congress appears to be ready to toss away pay-as-you-go in favor of economic stimulus in the hope that the money given to Americans will be fed back into the economy, hopefully saving jobs and giving short-term support to people who otherwise would be sunk by growing concerns of a recession. This is a win for Obama and Clinton who began pushing for such packages.

The Bush administration, it is rumored, the will announce something along the line of $800 per individual or $16,000 per household in tax rebates. President Bush is expected to make his plans known today. This would benefit the Republican presidential candidates who will no doubt jump on board or even call for more and point to this as a major reason for the need to have a Republican in the White House.

Meanwhile Democrats were considering a plan that would provide smaller rebates for most taxpayers with more assistance to lower-income individuals than the president’s rumored plan. This as seen as potentially $500 for individuals or $1,000 per household with some other programs benefiting low-income Americans added to it.

Whatever the outcome even if action is taken before November the issue and the fight over how to stimulate the economy has just begun on the campaign trail. More will come out later today.