WASHINGTON (Thomson Financial) - The House of Representatives overwhelmingly passed a 146 bln usd economic stimulus package today, sending it to the Senate, where controlling Democrats hope to add on the measure and top Republicans want to approve the measure as is.
‘What clearly seems to be called for here is a bipartisan accomplishment that reinforces the markets and the American people that the government is aware that the economy is slowing and wants to do something about it,’ Senate Republican Leader Mitch McConnell of Kentucky said today.
‘The quickest way to achieve that goal… would be for the Senate to take up and pass the House-passed bill and send it down to the president for signature,’ he said. ‘I hope that will be possible.’
The House approved the measure, which provides rebate checks of as much as 1200 usd for couples, by a vote of 385-35. One member voted present.
McConnell declined to say whether Republicans would vote against an expanded Senate version of the stimulus bill, or whether Republicans would be able to block Senate passage of the broader bill. However, he said he speaks for ‘most Republicans’ in supporting the House bill.
‘None of this has been completely sorted out,’ McConnell said, adding that a ‘significant majority’ of Republicans support the House bill.
Republicans are not expected to be unified, however, as some moderate Republicans are expected to support the Senate proposal and even press to add items.
Senator Susan Collins, a Maine Republican, said today she likes the Senate bill and wants to add money to it that would provide a home-heating oil subsidy to low-income Americans. She said she would team up with a Democratic senator to propose this addition on the Senate floor at some point.
‘I’d like to see some additions to it, but I do support the direction they appear to be going in,’ Collins said of the Senate proposal.
McConnell joins President George Bush, House Speaker Nancy Pelosi of California, and other prominent Democrats who want the Senate to simply approve the House-passed version, although Pelosi today indicated the House could work to find a compromise with the Senate.
Many House Democrats have warned that tinkering with the package as agreed by the White House and House Democrats could delay passage, although Senate supporters have said they can make the needed adjustments quickly.
The Senate bill was proposed by Senate Finance Committee Chairman Max Baucus of Montana, and his committee will take up the bill Wednesday.
The Baucus bill would include more tax breaks for businesses, but is more controversial for Democrats because it would allow individuals and families at all income levels to get a tax rebate.
Several House Democrats have said the income cap is a key provision that must be maintained. The House-approved bill would start phasing out tax breaks for individuals making more than 75,000 usd per year, and for married couples making more than 150,000 usd per year.
Senator Kent Conrad, a Democrat from North Dakota, said today he thinks the final bill approved by the Senate might include the income caps again, but he and other senators said the contents of the bill are up in the air this afternoon.
Treasury Secretary Henry Paulson called for swift passage of the measure.
‘I am confident that Senate leaders understand that speed and simplicity are key to getting a bipartisan agreement enacted. The time to act is now,’ Paulson said in a prepared statement.
Maybe its just me, but I cant say that I am all that upset about getting a check from the Treasury for about $1200.00. If they did this sort of thing every week I wouldnt have to work. 
Didn’t I hear the money is coming out of defecit spending, rather than pre-existing taxes?
Didn’t I hear the money is coming out of defecit spending, rather than pre-existing taxes?
I’m trying to find that out myself. I’m not for sure.
I’m trying to find that out myself. I’m not for sure.
Unless someone just happened to find a spare $150 billion lying around, then I am quite sure that this cash give away will only add to the deficit.