Rebates sail through first vote
A slowdown is feared as Senate add-ons grow.
Published January 30, 2008
WASHINGTON - The House voted Tuesday to rush rebates of $600 to $1,200 to most taxpayers, but a partisan battle brewed in the Senate over Democrats' efforts to add jobless aid and help for the poor to the economic stimulus package.
The House plan, approved 385-35 after little debate, would send rebates to some 111-million families and give tax breaks to businesses, costing $161-billion over two years.
President Bush and House leaders urged the Senate to take the bipartisan agreement and pass it quickly. Sen. Max Baucus, the Senate Finance Committee chairman, planned a vote today in his panel on a $196-billion package that could face a slower path to passage.
"The temptation is going to be for the Senate to load it up," Bush said in the Oval Office. "My concern is that we need to get this bill out of the Senate and on my desk."
Baucus' measure adds $35-billion for senior citizens and the unemployed and shrinks the rebate to $500 for individuals and $1,000 for couples. It would deliver checks even to the richest taxpayers, who are disqualified under the House measure.
Congressional leaders are aiming to send the package to Bush by Feb. 15. The goal was to start mailing out rebate checks in May and to have most of them to taxpayers by July so that people would spend the money and kick-start a slumping economy. But the divergent plans - and bids by Senate Democrats and some Republicans to enlarge the package with more add-ons - could drag out that schedule.
House Speaker Nancy Pelosi, D-Calif., said she hoped the Senate would "take this bill and run with it."
Senate Majority Leader Harry Reid, D-Nev., said that was unlikely in the freewheeling Senate, where members in both parties have elaborate wish lists for adding to the bill, including food stamps, Medicaid and heating assistance for low-income people and spending on infrastructure projects, among other things.
"I think that there's 51 Democratic senators without exception who believe this package can be made better," Reid said, adding that he also expected to have substantial GOP support for changes.
Pelosi cautioned against adding items that could hinder an economic recovery or scuttle the bipartisan agreement.
"It's important that this bill not get overloaded. I have a full agenda of things I would like to have in the package, but we have to contain the price," Pelosi said. "We made a decision, because that's where we could find our common ground."
Comparing the Senate and House plans
Senate House Seniors Social Security retirement and disability benefits qualify as income. A person must have earned at least $3,000 in income to receive a rebate. Senior citizens living solely off Social Security checks are ineligible. Rebate amount $500 for individuals and $1,000 for couples, plus an extra $300 per child under 17. $600 to $1,200, plus an extra $300 per child under 17. Income qualifications All Americans with earned income of $3,000 or more would get rebates. Gives only partial rebates to individuals with adjusted gross incomes of more than $75,000 and couples with incomes in excess of $150,000, and no rebate at all to the wealthiest taxpayers. Unemployment benefits Includes a 13-week extension of unemployment payments for those whose benefits have run out, and a 26-week extension in states where the jobless rate of 6.5 percent or higher. No provision. Businesses Roughly $50-billion worth of tax incentives to invest in new plants and equipment. Roughly $50-billion worth of tax incentives to invest in new plants and equipment. Mortgage crisis Sen. Charles Schumer, D-N.Y, wants to include the House's provisions in the Senate bill. Would allow more subprime mortgage holders to refinance into federally insured loans. Would boost the cap on loans that Fannie Mae and Freddie Mac can buy. Those measures would expire at the end of the year.
[Last modified January 30, 2008, 02:01:33]
[an error occurred while processing this directive]