Democrats in the U.S. Senate have a tax plan worthy of consideration -- an immediate rebate of $300 for every taxpaying American. Valued at $60-billion, the plan would also reduce the withholding tax for workers in the lowest tax bracket during the second half of the year, worth another $150 to each eligible person. The rebate is easily understood and would achieve the purported goal of President Bush's $1.6-trillion tax cut better than his own plan.

Bush has grown desperate to win congressional approval of his tax cut, which would disproportionately benefit the rich, and has altered its rationale to meet the changing scene. During the campaign, when the economy was apparently soaring, candidate Bush said the government should share the wealth by returning some of the surplus in the form of tax cuts. When the economy tanked soon after he took office, President Bush said his tax cut would be an economic stimulus to lift the country out of a near (or actual) recession. But the Bush tax cut over 10 years is not designed to have an immediate impact on the economy. Most of its benefits would come in later years, as the inheritance tax would be phased out and marginal tax rates, even for the wealthiest Americans, would be lowered.

An immediate rebate would put money in the hands of consumers. Of course, both Bush and the Democrats are on shaky ground when they say a tax cut or rebate is going to put the economy into a sharp U-turn. Interest rate cuts by the Federal Reserve are the best way to rescue the country from a recession.

The strongest arguments for a rebate are that it is fairer, sharing a tax cut equally among rich and poor, and more responsible. Bush's tax cut is actually valued at $2-trillion or more and poses a threat to future federal budgets. He based his numbers on speculative estimates of coming surpluses, and if they prove to be exaggerated, the tax cut would eat into revenues. That would put additional strain on Social Security and Medicare. A one-time rebate would not encumber Congress in meeting its obligations if surpluses shrink or disappear.

The tax-cut battle will be fought in the Senate, where Republicans and Democrats are divided 50-50. Some Republicans already look favorably on a tax rebate and believe the Bush plan costs too much. A compromise giving immediate relief to taxpayers and reducing the overall cost of tax cuts would best serve Congress, the economy and all Americans.

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