Stimulus plan to create up to 600,000 jobs: Paulson

U.S. Treasury Secretary Henry Paulson said on Friday that an
economic stimulus program that will put $168 bln into consumers’ hands this
year and next could help create hundreds of thousands of new jobs.

“We know they’re going to be helpful,” Paulson
said on CNN television. “These (tax rebate) checks should be a big part of
adding 500,000 to 600,000 additional jobs this year.”

Some 130 mln Americans are to get tax rebate checks up to
about $600 for individuals and $1,200 for couples, with the first of the checks
to start flowing in early May.

On other issues, Paulson said it was important to maintain
stable, orderly financial markets and said the Treasury was trying to help
mortgage-holders who are in difficulty voluntarily work out repayment options
with lenders.

Treasury announced earlier this week that the Internal
Revenue Service will keep about 320 offices open on Saturday to encourage an
estimated 20 mln Americans who do not normally file a tax return to do so.

Only people who file returns will be eligible for rebate
checks.

Paulson turned aside a question on whether the government
should become more directly involved in helping mortgage holders who face
trouble keeping up their payments and are facing foreclosure in growing
numbers.

“We’ve been doing a lot to reach out to the average
homeowner,” Paulson said, pointing out that only 2% of homeowners were
facing foreclosure. “We have an effort to help all those who can avoid
foreclosure do so.”

He said more than one million people had been helped through a voluntary
alliance of lenders and servicers, representing 90% of so-called subprime
mortgage lenders, who are helping homeowners find new payment options.