"Who's the bigger man" by Claudia Sonea

The House, responding to the economy's slump, passed on Tuesday a $146 billion aid package that would speed rebates of $600-$1,200 to most taxpayers. It would send at least some rebate to anyone with at least $3,000 in income, with more going to families with children and less going to wealthier taxpayers. Democrats and some Republicans backed a larger package that adds billions of dollars for senior citizens and the unemployed, and shrinks the rebate to $500 for individuals and $1,000 for couples. However such a plan would deliver checks even to the richest taxpayers, who are disqualified under the House-passed measure, according to Finance Committee Chairman Max Baucus. In spite of the negative sides, both projects would boost equipment and other purchases, therefore President Bush and House leaders urged the Senate to take the bipartisan agreement and pass it quickly. Baucus, D-Mont., planned a Wednesday vote in his committee on a larger package that could face a slower path, but Bush said in the Oval Office that it is an urgent matter that can't stand any more delay. The competition between Senate Democrats and Republicans to swell the package with more add-ons could drag out the bill to be passed, although the Congres want to present it until 15 February. Furthermore Senate Majority Leader Harry Reid, D-Nev., said that in the Senate members have elaborate wish-lists for adding to the bill, including food stamps, Medicaid and heating assistance for low-income people and spending on infrastructure projects, among other things, causing the matter to be further dragged. The opinion on the passing of the bill is divided; some senators like Sen. Mitch McConnell, R-Ky., the minority leader, think that reopening the deal would be inappropriate, while others wish to add some more benefits to low income people. This impossibility of getting to an agreement could hinder an economic recovery or scuttle the bipartisan agreement. Pelosi, supported by Rep. John A. Boehner, R-Ohio with whom he forged the agreement Pelosi in consultation with Treasury Secretary Henry M. Paulson, reminded that the bill they put together represents a common ground between the Democrats and the Republicans and overloading it would be risky. Some 111 million people, including roughly 35 million families who don't make enough to pay income taxes would receive rebates. Individuals with adjusted gross income of $75,000 and couples making $150,000 would get rebates equal to the taxes they paid, up to $600 for individuals and $1,200 for couples. At the opposite pole whoever crosses this limit will see the rebate go down by 5 percent of every dollar of income over the limits. For every child all eligible family would get an extra $300. Both projects have $50 billion worth of tax incentives for businesses to invest in new plants and equipment and they both come as a consequence of mortgage crisis. The House bill that it is urged to be signed would raise the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas and it would also boost the cap on loans, thus more subprime mortgage holders would be able to refinance into federally insured loans.

related story: http://news.yahoo.com/s/ap/20080129/ap_on_go_co/economy_stimulus;_ylt=AqUKJJ251t4QPcVwCMVjVnms0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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