Economic Stimulus Package Moves Forward
Amid growing concerns about the state of the U.S. economy, the House of Representatives passed its $150 billion economic stimulus package by a 385-35 vote on January 29th. As noted in last week's Insider, the House bill was crafted in cooperation with the White House and includes tax cuts for businesses and rebate checks for workers (including those who do not pay income taxes) -- but not the extension of unemployment benefits or temporary boost in food stamps that economic justice groups had advocated.
Under the plan, anyone with at least $3,000 in earned income in 2007 would get a rebate check of at least $300; those with children would also get $300 additional for each child. People with income tax liability would receive up to $600 for individuals and $1,200 for couples, plus the added amount for children. Income eligibility would be capped at $75,000 for individuals or $150,000 for couples. Above that level, the benefit would phase out -- except for extra-child rebates, which would not be subject to a cap.
Meanwhile, the Senate worked on a more expansive economic stimulus package. On Wednesday, the Senate Finance Committee approved a $157 billion bill that would provide a flat $500 rebate to every American earning $3,000 or more a year; it would expand those receiving rebates to include seniors and veterans with disabilities; and it would increase the income level at which rebates phase out (to $150,000 for individuals and $300,000 for couples). In addition, the package would extend unemployment insurance benefits for an additional 13 weeks after an unemployed person has exhausted state benefits, plus 13 more weeks in states where the unemployment rate is especially high.
However, several Senators, both Democrats and Republicans alike, have criticized the Finance Committee's package, making it unlikely that the measure will be approved when it comes to a vote on the Senate floor next week. If the bill is rejected, Senate Democrats would add pieces of the package to the House bill as amendments.
The Senate is expected to hold a series of votes on the stimulus package next week. Congressional leaders have vowed to have a final stimulus package ready for the President's signature by February 15th.