The House approved their version of an economic stimulus plan today by a vote of 385 (Y) to 35 (N). This plan has strong backing from the President. Support in the Senate, however, is another matter.
According to an Associated Press article published today, Majority Leader Reid (D-NV) believes that he has at least a majority (51) of Senators who wish to modify the House version of the stimulus package. He added that those supporters may also include some Republican members. Aside from modifying the bill as passed, Senator Baucus (D-MT, Chairman of Senate Finance Committee) has written a separate Senate measure to tackle the current economic situation.
The AP reports that this plan would cut the tax rebate for individuals to $500 dollars and cut the tax rebate for couples to $1000 dollars. The House version would pay up to $600 dollars for an individual and $1200 for a couple. The Baucus proposal would also remove the income caps within the House bill and would add tax rebates for an estimated 20 million individuals, mainly senior citizens, who would not be covered since they do not earn income. The removal of the income caps, which put a limit on who can receive a tax rebate, is not likely to be a popular addition to any economic package for some members in the Senate.
Additionally, the plan proposed by Senator Baucus would extend unemployment benefit payments for 13 weeks for those whose benefits have run out. This extension could increase up to 26 weeks in states with higher jobless rates. It would also add in a tax break allowing businesses to reclaim taxes they had previously paid due to current losses. This tax break was previously withdrawn from the House bill.
Lastly, the Senate version of the stimulus package will be virtually identical to the House version in dealing with the housing mortgage crisis. The House bill raises the FHA (Federal Housing Administration) loan limit from $362,790 up to $729,750. This would allow for more mortgage refinancing using federally-inured loans. The House version also increases the loan cap for purchases by Fannie Mae and Freddie Mac from $417,000 up to $729,750. This works to increase the availability of mortgages on a national basis. Senator Schumer (D-NY) stated in the article that he would push for those same provisions in the Senate’s version.
The plan is scheduled to be introduced into the Senate Finance Committee tomorrow.
