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Broad stimulus plan advances

The Senate may vote today on the measure, which Bush opposes.

WASHINGTON - A plan to send $500 to $1,000 rebates to all but the richest taxpayers advanced in the Senate on Wednesday after Republicans and Democrats teamed to add aid for disabled veterans, the elderly and the unemployed to a House-passed economic recovery bill.

The package would make individuals with annual incomes of up to $150,000 and couples with incomes up to $300,000 eligible for the rebates. Qualifying families would also get $300 per child.

The Senate Finance Committee approved the measure on a bipartisan vote Wednesday, and senior aides said the Senate could begin voting on it as early as today in hopes of completing it by week's end. Americans could begin getting rebates in May, with the bulk expected to arrive in June.

The income limits compare with caps of $75,000 for individuals and $150,000 for couples in an economic stimulus bill that the House passed Tuesday.

The Senate bill would pump $193-billion into the economy over the next two years. The House measure would inject $161-billion.

The Senate plan would expand rebate eligibility to 20-million older Americans on Social Security and to disabled veterans.

It also would extend unemployment payments for 13 weeks for those whose benefits have run out, with 26 more weeks available in states with the highest unemployment rates. The only state that currently meets the trigger is Michigan.

The Senate plan would restore a business tax break dropped during the House negotiations that would permit corporations suffering losses now to reclaim taxes previously paid.

Both packages include roughly $50-billion worth of tax incentives for businesses to invest in new plants and equipment. The Senate plan also adds $5.5-billion in renewable energy tax incentives.

The Senate bill goes further than the House package in efforts to bar illegal immigrants from receiving rebates. Under the Senate measure, recipients and their spouses and children would have to have valid Social Security numbers to qualify. The House bill omits that requirement, although it expressly disqualifies nonresident aliens.

The bipartisan Senate package faces challenges from the left and right. Democrats and some Republicans said Wednesday they would move to add money for food stamps and heating aid for the poor.

White House deputy press secretary Tony Fratto said a disappointing fourth-quarter growth rate should give the Senate greater urgency to pass the bill.

"We'd like to see some leadership that will encourage members to put away some of their pet ideas and think about the bigger picture," Fratto said.

FAST FACTS:

Watch for scams

Even before Congress passes an economic stimulus package, identity thieves are using promises of tax rebates to trick people into revealing financial and personal data, the IRS warned Wednesday. Some fraud is committed under the ruse of offering advance rebate payments. The IRS is not authorized to give such payments. The IRS stressed that it does not collect information by telephone, and it advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov

Associated Press

[Last modified January 31, 2008, 01:52:38]