Bailout clears Senate, returns to House

The Senate breathed new life into the government’s scuttled $700 billion bailout package this evening when it approved a modified version of the bill by a vote of 74 to 25. The bill, defeated by the House on Monday by a vote of 228 to 205, is expected to return there for a vote on Friday. The Senate’s revised bill sweetened the original package by tacking on a number of tax breaks and other perks in the hopes of swaying the House to reverse its original veto. The add-ons include tax breaks for businesses, users of alternative energy and hurricane victims as well as relief from the alternative minimum tax. Also, it would boost the limit on FDIC-insured bank deposits to $250,000 from $100,000 for one year. Additionally, a bill boosting improved health insurance for mental health was wrapped into the package. In all, the add-ons bring the potential package cost to over $800 billion, according to published reports. The revised bailout received the support of both presidential candidates. “It marks a decisive step in the right direction,” said Sen. John McCain, R-Ariz, prior to the vote. “This is not just a Wall Street crisis, it’s an American crisis,” said Sen. Barack Obama, D-Ill. earlier in the day. “I commend the Senate for tonight’s strong bipartisan vote,” Treasury Secretary Henry Paulson said in a statement. “This sends a positive signal that we stand ready to protect the U.S. economy by making sure that Americans have access to the credit that is needed to create jobs and keep businesses going.” Senate Republican leader Mitch McConnell, R-Ky, commended his colleagues for their bipartisan support for the bill. “In the years that I’ve been here, I can’t recall a single time in this close proximity to an election, both sides have risen above the temptation to engage in partisan game-playing to address an issue of great magnitude,” he said. However, it’s not clear if the House will be swayed. American taxpayers have swamped many representatives’ offices with e-mails and phone calls, with overwhelming majority urging them to vote down the bill.