Revival package for US gets the final touches
Leaders in the US House of Representatives are looking for quick agreement with the White House on an emergency package to jolt the economy out of its slump.
By Agencies |
WASHINGTON: Democratic and Republican leaders in the US House of Representatives are looking for quick agreement with the White House on an emergency package to jolt the economy out of its slump after negotiators on all sides made significant concessions at a late-night bargaining session. House Speaker Pelosi agreed to drop increases in food stamp and unemployment benefits during the Wednesday meeting in exchange for gaining a rebate of at least $300 for each person earning a paycheck, including low-income earners who make too little to pay income taxes.
Families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200, according to a senior House aide who outlined the deal on condition of anonymity in advance of formal adoption of the whole package.
Pelosi and House Minority leader John Boehner had yet to reach agreement on a package of tax breaks for businesses after estimates showed a tentative business tax agreement could exceed $70 billion, far more than had been expected, the aide and a Democratic lobbyist said. Pelosi and Boehner appeared optimistic as they left their third extended negotiating session of the day with treasury secretary Henry Paulson. "We'll have more to say tomorrow," Boehner said. "We're hopeful."
However, Pelosi's spokesman said another negotiating session tentatively scheduled for Thursday morning was postponed because the speaker first needed to brief fellow Democrats on the emerging plan. Democratic aides said greater Republican flexibility over giving relief to poor families with children - who would not have been eligible under President George Bush's original tax rebate proposal - was the catalyst that moved the talks forward.
Bush backs larger rebates, but his plan would have left out 30 million working households who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Centre. An additional 19 million households would have received only partial rebates under Bush's initial proposal.
The business tax portion still being negotiated would give businesses incentives to invest in plants and equipment, give small businesses more generous expensing rules and allow businesses suffering losses now to reclaim taxes previously paid. The last item on spreading operating losses was proving to be unexpectedly expensive.
Congressman Barney Frank said negotiators also were near an agreement on an overhaul of the Federal Housing Administration that would make it easier for thousands of homeowners with ballooning interest rates to refinance into federally insured loans. That measure might advance separately of the tax relief package, however.
Pelosi's decision to drop expanding unemployment payments and more money for food stamps - which many lawmakers had assumed would be included in the package- could prove very controversial with Democratic constituencies such as workers' unions.
Families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200, according to a senior House aide who outlined the deal on condition of anonymity in advance of formal adoption of the whole package.
Pelosi and House Minority leader John Boehner had yet to reach agreement on a package of tax breaks for businesses after estimates showed a tentative business tax agreement could exceed $70 billion, far more than had been expected, the aide and a Democratic lobbyist said. Pelosi and Boehner appeared optimistic as they left their third extended negotiating session of the day with treasury secretary Henry Paulson. "We'll have more to say tomorrow," Boehner said. "We're hopeful."
However, Pelosi's spokesman said another negotiating session tentatively scheduled for Thursday morning was postponed because the speaker first needed to brief fellow Democrats on the emerging plan. Democratic aides said greater Republican flexibility over giving relief to poor families with children - who would not have been eligible under President George Bush's original tax rebate proposal - was the catalyst that moved the talks forward.
Bush backs larger rebates, but his plan would have left out 30 million working households who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Centre. An additional 19 million households would have received only partial rebates under Bush's initial proposal.
The business tax portion still being negotiated would give businesses incentives to invest in plants and equipment, give small businesses more generous expensing rules and allow businesses suffering losses now to reclaim taxes previously paid. The last item on spreading operating losses was proving to be unexpectedly expensive.
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Congressman Barney Frank said negotiators also were near an agreement on an overhaul of the Federal Housing Administration that would make it easier for thousands of homeowners with ballooning interest rates to refinance into federally insured loans. That measure might advance separately of the tax relief package, however.
Pelosi's decision to drop expanding unemployment payments and more money for food stamps - which many lawmakers had assumed would be included in the package- could prove very controversial with Democratic constituencies such as workers' unions.
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