Rival stimulus plan gains traction
Senate Finance Committee, with key GOP backing, approves a $193-billion package to revive the economy. Bush urges senators to accept the bill he supports, which has already been passed by the House.
WASHINGTON — With growing GOP support, an alternative economic stimulus package picked up momentum in the Senate today, potentially complicating the campaign to quickly pass legislation to pump billions of dollars into the ailing economy.
The Senate economic package -- backed by Finance Committee Chairman Max Baucus (D-Mont.) and ranking member Charles Grassley (R-Iowa), who announced his support today -- won a 14-7 bipartisan nod in the committee.
Three Republicans joined 11 Democrats in supporting the measure.
The proposal could come up for debate on the Senate floor as soon as Thursday as an alternative to a House package that passed with overwhelming Republican support on Tuesday.
Baucus' plan, which offers rebate checks to nearly all but the wealthiest taxpayers, would pump approximately $193 billion into the economy over the next two years, and cost the treasury $152 billion over the next decade, according to the Joint Committee on Taxation.
Its centerpiece is a proposal to send $500 rebate checks to single filers, including senior citizens and many upper middle-class taxpayers who were excluded in the House legislation. Joint filers would get $1,000 or more if they have children. Individuals with incomes above $150,000 or couples with incomes above $300,000 would be ineligible for the rebates.
The measure would extend unemployment benefits by an additional 13 weeks, reflecting the desire of many Democrats to provide additional assistance to those most affected by the economic downturn.
Baucus' efforts to offer his own economic stimulus legislation have drawn criticism from House leaders, as well as the president and his GOP allies in the Senate. All have urged swift approval of the simpler compromise bill approved by the House.
Several Republican senators repeated that plea today and voted against Baucus' measure in committee.
And President Bush repeated his call for swift action in a speech today in Torrance. "If you're truly interested in dealing with the slowdown of the economy, the Senate ought to accept the House package, pass it, and get it to my desk as soon as possible," Bush said.
But Grassley's backing provided a critical Republican endorsement for the Senate alternative. "This is a big improvement," he said, hailing the measure as important "bipartisan middle ground."
