Bush to Create 'Personal Accounts' for Unemployed

U.S. President George W. Bush on Tuesday will propose a $3.6 billion job-training program creating personal accounts for people having a hard time finding work, administration officials said.

The funds, part of Bush's 10-year, $600 billion plan to boost the economy, would be offered to states to fund so-called "personal re-employment accounts" with up to $3,000 to those deemed eligible.

Recipients could use the money to purchase job training and pay for key services like child care and transportation. If the account-holder finds a job before the $3,000 is spent, he or she could keep the balance as a "bonus."

Administration officials said this would provide an incentive for the unemployed to seek work and would give them more control over their access to training and services.

The centerpiece of Bush's economic plan, which will be unveiled in Chicago on Tuesday, will be the elimination of taxes paid on dividends by shareholders. Administration officials believe the change, which will cost up to $300 billion over 10 years, could boost stock prices by 10 percent.

Source: Reuters