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US House Approves 100-Billion-Dollar Economic Stimulus Package
The US House of Representatives on Wednesday narrowly approved a Republican economic stimulus plan of 100 billion U.S. dollars in an effort to revive the ailing economy.
The 216-214 vote sent the bill to the Democratic-controlled Senate, where major changes are likely before a final package is approved.
The House legislation includes four key items sought by President George W. Bush: repeal of the corporate alternative minimum tax, a new round of tax rebate checks of up to 600 for lower-income workers, a cut in the 27 percent income tax rate to 25 percent in 2002 instead of 2006 and greater expensing write- offs for business equipment purchases.
The bill also cuts long-term capital gains rates from 20 percent to 18 percent for most taxpayers, gives major corporations refunds for alternative minimum taxes they paid as far back as 1986 and permanently extends a tax break for financial services firms that do business overseas. The alternative minimum tax ensures that people or businesses that take many deductions and credits still pay a minimum amount of taxes.
House Republican leaders said their approach would immediately boost an economy faltering since the September 11 terror attacks.
"We need to put our foot on the gas right now," said Representative Bill Thomas, a Republican from California, chairman of the House Ways and Means Committee.
But Democrats fiercely disagreed with the Republican bill. Representative Martin Frost, a Democrat from Texas, said the package represented political payback for Republican business supporters left out of earlier tax cuts, could cause deep government deficits and would do little for laid-off workers or homeland security.
"It's clear the House bill cannot pass the Senate as it is," said Senator John Breaux, a Democrat from Louisiana.
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