Congress Passes Stimulus Package
Category: News and Politics


Congress Passes Stimulus Package
Plan Calling For Rebates Heads To Bush's Desk

POSTED: 3:29 pm EST February 7, 2008
UPDATED: 7:55 pm EST February 7, 2008

WASHINGTON -- Congress, facing the prospect of an election-year recession, passed an emergency plan Thursday that rushes rebates of $600 to $1,200 to most taxpayers and $300 checks to disabled veterans, the elderly and other low-income people.

President George W. Bush indicated he would sign the measure.

Passage in the House came by a 380-34 vote a few hours after Senate leaders ended a stalemate over the proposal. The $168 billion plan is intended to provide a boost for an economy battered by a housing downturn and a credit crunch.

The Senate's 81-16 vote capped more than a week of political maneuvering. The stalemate ended when majority Democrats dropped their demand that rescue proposal offer jobless benefits, heating aid for the poor and tax breaks for the home building and energy industries.

But Republican leaders agreed to add $300 rebates for older people and disabled veterans to the $161 billion measure that the House passed last month.

The Senate vote ends more than a week of political maneuvering on the plan, which is aimed at reviving the economy. The rebates would go to individuals making up to $75,000 a year, and to couples earning up to $150,000.

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

The retreat by Senate Democrats came after House Speaker Nancy Pelosi sided with Republicans, and urged the Senate to stop its infighting and pass the stimulus plan.

Despite the fact that the newly approved bill won't land on Bush's desk until next week, officials at the U.S. Department of Treasury said they would begin the process to issue the rebate checks immediately.

Rebate checks could begin arriving in May. The rebates would be based on 2007 tax returns, which are not due until April 15..
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