House, Senate Pass Economic Stimulus Plan

First posted on 02-08-2008

With unusual speed and surprising alliances, Congress passed an economic stimulus package intended to rush rebates of $600 to $1200 to most taxpayers and $300 to disabled veterans, the elderly and certain low-income people. President Bush has indicated he will sign the bill into law.

Senate leaders ended a stalemate over the measure and sent it back to the House, which passed the stimulus plan with a 380-34 vote. The tax relief package will cost around $168 billion and is intended to put cash in Americans’ hands that they will, hopefully, spend and boost the economy. The package also includes several tax breaks for businesses and has some features intended to help the ailing housing market.

The Senate kicked around the plan for nearly a week before passing it by an 81-16 vote. Democrats had demanded the plan include extended unemployment benefits, heating aid for the poor and tax breaks for the home building and energy industries. The full Democratic version would have cost $205 billion.

But Senate Democrats were one vote shy of being able to break a Republican filibuster. Senate leader Nancy Peolsi finally stopped the bickering when she urged senators to stop the fighting and pass the bill.

“There’s no reason for any more delay on this,” Pelosi said.

Bush called the final version “robust, broad-based, timely, and it will be effective.” In a statement issued by the White House, Bush said that the compromise plan was “an example of bipartisan cooperation at a time when the American people most expect it.”

The rebate checks could start arriving as early as May and will be based on 2007 tax returns. The legislation would rush rebates to most taxpayers and immediately cut taxes to businesses. Individuals making up to $75,000 a year and couples earning up to $150,000 would get the full rebate, with those making more than that getting smaller checks.

People who paid no income taxes but earned at least $3,000 - including through Social Security or veterans’ disability benefits - would get a $300 rebate check.