Senate ready to consider rebates for even more Americans

Last update: January 30, 2008 - 8:29 PM

An alternative economic stimulus package picked up momentum in the Senate on Wednesday with new Republican support, potentially complicating the bid to pass legislation quickly to pump billions of dollars into the ailing economy. The Senate could begin voting on it as early as today.

THE LATEST ACTION

The Senate economic package -- which would offer lower rebates than the House version but send them to many more Americans -- won a 14-7 bipartisan nod in the Finance Committee on Wednesday. Three Republicans joined 11 Democrats in supporting the measure after Sen. Charles Grassley, R-Iowa, the ranking member, endorsed it.

THE SENATE PLAN

• Offers rebate checks to nearly all but the wealthiest taxpayers. It would send $500 checks to individuals, including senior citizens, disabled veterans and many upper middle-class taxpayers who were excluded in the House legislation. Couples would get $1,000, with an additional $300 for each child. Individuals with incomes of more than $150,000 or couples with incomes of more than $300,000 would be ineligible for the rebates.

• Would extend unemployment benefits by 13 weeks.

• Would include temporary tax breaks for businesses.

• Would pump about $193 billion into the economy over the next two years and cost the Treasury $152 billion over the next decade.

THE HOUSE PLAN

By comparison, under the House plan, single filers would get a $600 rebate that would begin phasing out for those earning more than $75,000. Married couples would get $1,200 and $300 for each child. That rebate would start to phase out at $150,000. It includes business tax breaks and a large one-year increase in the size of mortgages that can be backed by the government. It would inject an estimated $161 billion into the economy over two years and cost $117 billion over the next decade.

LOOKING AHEAD

If the Senate approves its own economic stimulus package, it would have to be reconciled with the House version before it is sent to the president, which could delay its enactment. Senate Majority Leader Harry Reid, D-Nev., has said he wanted to complete work on the package by Feb. 15. Rebate checks would not begin arriving until May, at the earliest.

los angeles times

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