Senate economic aid package faces test - Yahoo! News

Senate economic aid package faces test - Yahoo! News: "Senate economic aid package faces test" By JULIE HIRSCHFELD DAVIS, Associated Press Writer WASHINGTON - The Senate moved toward a partisan clash Wednesday over Democrats' efforts to add more than $40 billion in checks for the elderly, disabled veterans and the unemployed, and heating aid for the poor to a House-passed economic aid plan. Democrats were struggling to find enough GOP support to advance the package over the objections of Republican leaders, who have called for a much narrower package. The White House urged the Senate this week to approve a more limited, $161 billion House-passed measure "without delay." "We started out united behind a proposal to help struggling taxpayers and stimulate the economy. Now some are insisting on a plan that might not even be signed into law," said Sen. Mitch McConnell, R-Ky., the Republican leader. The House plan would send rebates of $600-$1,200 to about 111 million Americans who receive paychecks of $3,000 or more, plus an additional $300 per child, with less available to individuals with income in excess of $75,000 and couples making more than $150,000. The Senate version has checks of $500-$1,000 for a broader group that includes 20 million seniors and 250,000 disabled veterans, and taxpayers making up to $150,000 for singles — or $300,000 for couples. The Senate package also includes a $14.5 billion unemployment extension for those whose benefits have run out, $1 billion in heating aid for the poor — a program that enjoys broad bipartisan support — and a tax break that allows businesses suffering losses to reclaim previously paid taxes. It includes $10 billion in mortgage bonds to help homeowners refinance their loans and several tax breaks for renewable energy. "The House plan was a start, but it was only a start," said Majority Leader Harry Reid, D-Nev. McConnell said Republicans favor simply adding rebates for seniors and disabled veterans to the House-passed bill, as well as including language — also part of Senate Democrats' measure — designed to ensure that illegal immigrants can't get rebates. That GOP proposal has support from the White House, McConnell said, "so we can expect that it would be signed into law." Democrats need 60 votes to advance their more costly package, and they were lobbying intensely to convert wavering Republicans, including several facing tough re-election fights. Their efforts were getting a boost from outside groups leaning on senators to back the package, including home builders, manufacturers and the powerful seniors' lobby. GOP leaders, working to stem defections, were assuring Republicans that they would have another chance to support adding senior citizens and disabled veterans to the aid plan even if they opposed the Democrats' bill. Reid has rejected that idea, saying Republicans shouldn't get to choose which elements of his party's package they support. He said he's not willing to "throw seniors under the bus." Reid would not say what he would do if Democrats failed to overcome Republicans' objections and get an up-or-down vote on the proposal. That leaves the fate of the House measure uncertain. Asked Tuesday whether the administration would accept adding rebates for the elderly and disabled veterans to the stimulus measure, Treasury Secretary Henry M. Paulson declined to say definitively, but he told the Finance Committee, "I'm sure we'll be able to work something out and get something quickly done that's broad-based." The dispute has slowed down the stimulus measure, but there's no indication that it will delay rebate checks, which are expected to begin arriving in May. The rebates will be calculated based on 2007 tax returns, which aren't due until April 15. ___ Associated Press writer Andrew Taylor contributed to this story.