Posted on: Thursday, January 24, 2008
Dem, GOP leaders near agreement on stimulus
Associated Press
WASHINGTON — Pushing deficit concerns aside, Democratic and Republican leaders appeared close to agreement with the White House last night on emergency tax cuts and benefit increases to jolt the economy out of its slump.
"We'll have more to say tomorrow morning," said House Minority Leader John Boehner. "We're hopeful."
Boehner, R-Ohio, made his remarks exiting his third extended negotiating session of the day with House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Henry Paulson.
Democratic aides said greater GOP flexibility over giving income tax relief to poor families with children — who would not be eligible under President Bush's tax rebate proposal — had moved the talks forward.
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.
