House passes $146B stimulus package

The House of Representatives this afternoon acceded to President Bush’s call for quick passage of the economic stimulus plan by voting 385-35 to approve a $146 billion economic stimulus package for 111 million taxpayers. The plan includes tax rebates of $600 to $1,200 and provides tax breaks to businesses as well. “We’re talking about the heart of America – hardworking middle-class people that are now being targeted because they can’t afford to take care of their families,” said Ways and Means Committee chairman Charles Rangel, D-N.Y. The Senate is planning to vote on a $160 billion version of the stimulus bill tomorrow, according to the reports. That plan, proposed by Senate Finance Committee chairman Max Baucus, D-Mont., would give rebates of $500 to $1,000 to a broader group, including 20 million senior citizens living off of Social Security, as well as wealthier taxpayers. It would also extend unemployment benefits. Under the House bill, 35 million families who don’t earn enough to pay income taxes would receive rebates. Rebates for couples with adjusted gross incomes of $150,000 and individuals with AGI of $75,000 would be reduced by 5% for every dollar of income above those limits. About 35 million families that do not earn enough to pay taxes would also receive at least $300 for individuals and $600 for couples. Rebates of $300 per child are included in the House bill as well. Mr. Baucus’ proposal would remove the income caps and send rebates to senior citizens not covered by the House plan because they don’t have income. The Senate bill also would extend unemployment benefits for 13 to 26 weeks, depending on the state’s unemployment rates. “The more that this is kept slimmed down and it’s clean and simple, the better. I do not want it loaded up with lots of other provisions,” Mr. Baucus said. “Nobody wants to be held responsible for stopping this from going through.” Majority Leader Harry Reid, D-Nev., hopes to have the legislation passed by the end of the week.