Stimulus Package: What's in and Out
Wednesday, January 23, 2008
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Congressional leaders and Treasury Secretary Henry Paulson are narrowing their differences in search of a bipartisan economic stimulus deal that could move swiftly through Congress.
WHAT'S IN
_Tax rebates: Checks of at least $400 for individuals and even more for married couples and people with children. The White House is pushing for higher rebates; Democrats want to extend them to low-income people and impose an income cap.
_Business tax write-offs: Spurring business investments with so-called bonus depreciation, more generous expensing rules and a change to allow businesses suffering losses now to reclaim taxes previously paid.
_Housing rescue: Making it easier for thousands of homeowners with ballooning interest rates to refinance into federally insured loans and allowing Fannie Mae and Freddie Mac to buy loans larger than $417,000.
_Unemployment insurance: Extending benefits past 26 weeks. The White House wants to limit extensions to the handful of states with unemployment rates exceeding 5.5 percent.
_Food stamps: A boost for benefits.
WHAT'S OUT
_Permanent tax cuts: Republicans concede that their top priority would have to be left out.
_Medicaid: Democrats are ready to give up on including Medicaid payments to states.
_Low-income heating subsidies: Democrats are surrendering the fight to include them.
_Infrastructure spending: Spending on transportation or repair projects already under way is off the table.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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