The economic stimulus package passed on Wednesday by the Senate Finance Committee would inject almost $200 billion into the US economy over two years in order to combat recession. While the White House and the House of Representatives agreed on a economic stimulus package, the Senate’s version originally had no income ceiling.
However, the committee changed its mind on Wednesday. The cap for individuals would be $150,000. For couples it would be $300,000. This had come after Democrats have given their objection to the idea of giving a rebate to wealthy Americans.
There are differences between the Senate’s version and the House’s version of the economic stimulus packages.
The Senate’s version calls for those rebate checks for $500 for individuals with $1,000 for couples. There would also be $300 per child to filers with at least an income of $3,000. This is a lower rebate than the House version.
The bill proposed by the Senate also allows for income from Social Security to count as earned income. This would add about 20 million senior citizens to the list who would get those rebates. This also offers rebates to a quarter of a million disabled veterans that do not qualify for them under the plan by the House.
“If we want people to spend money, it makes sense to give rebates to as many people as possible,” said Senator Max Baucus.
The Senate’s version will also extend unemployment benefits.
However, President George W. Bush supports the House version that injects $145 billion into the economy. He urged the Senate to drop its effort to pass a different one.
“Whatever the Senate does, they should not delay this package. They should not keep money out of your pocket,” Bush said to employees at a helicopter manufacturing plant in California.
Bush added: “If they’re truly interested in dealing with the slowdown in the economy, the Senate ought to accept the House package, pass it and get it to my desk as soon as possible.”
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