The Wall Street Journal-20080201-House Stimulus Bill Likely to Stand- Few Changes Are Expected To Survive Senate Debate- Rebates to Senior Citizens-

Return to: The_Wall_Street_Journal-20080201

House Stimulus Bill Likely to Stand; Few Changes Are Expected To Survive Senate Debate; Rebates to Senior Citizens?

Full Text (596  words)

WASHINGTON -- For all the changes Senate Democrats want to debate when they take up economic-stimulus legislation next week, the package they are expected to approve is likely to be very similar to the version passed by the House.

A plan the Senate Finance Committee passed Wednesday, which diverged from the House bill by including tax breaks for renewable energy and struggling businesses, isn't expected to get the 60 votes needed to pass in the Senate, top Democrats indicated. It wouldn't be added to the House bill, unless a lobbying push by the AARP and others wins over more Republican support.

A catch-all amendment containing other Democratic priorities, such as funding for food stamps and an unemployment-insurance extension, also is likely to fall short in a Senate vote. Senate Democrats still have a shot at broadening the House's tax-rebate program with a planned amendment to add millions of senior citizens on Social Security and disabled veterans. That would pick up the most popular elements of the plan passed by the finance panel.

Democrats also plan a vote that would add low-income heating- assistance funds to the legislation, a priority of some Northern senators in both parties that has some chance of getting enough votes. If nothing else, the Senate debate will give Democrats an election- year platform to draw distinctions with Republicans and to attract the attention of the elderly, an important voting bloc.

While there is bipartisan interest in the Senate in extending tax rebates to senior citizens, and in adding funding for low-income heating assistance, most Republicans would prefer a narrower package without new spending. The bipartisan bargain struck in the House included only a tax rebate and business tax breaks, without spending on unemployment insurance or other items.

The fast-moving legislation shows how lawmakers are under pressure to produce some substantive legislation after a year of gridlock and amid a worsening economy. Lawmakers are especially eager to complete a bill before they go home to face constituents Feb. 15.

Democrats already were focusing on the argument about adding senior citizens yesterday. Sen. Max Baucus (D., Mont.) spoke on the Senate floor about the importance of the "greatest generation," while standing in front of blue sign that said in bold, yellow letters: "20 million seniors."

"These are the seniors the Finance Committee is fighting for," Mr. Baucus said.

Senate Minority Leader Mitch McConnell (R., Ky.) said again that the Senate should pass the House bill without changes "to prevent more delay." However, Senate Majority Leader Harry Reid of Nevada plans to use procedural rules to force consideration of a limited number of amendments. Mr. Reid said Democrats want to put "the stamp of the Democratic Party" on the stimulus bill. "It's up to the Republicans how long this takes," Mr. Reid said.

It was unclear how the changes under consideration in the Senate would be received by the House, which isn't currently in session but worked out its deal with President Bush. Rebates for senior citizens on Social Security would add an estimated $14 billion to the cost of the package. But it is a difficult change for lawmakers to oppose.

If the House bill is, as expected, the basis for Senate action, the legislation coming out of the Senate would contain increases in home- loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration. It also would also include tax breaks to encourage businesses to invest in new equipment and plants.

Any differences between the House and Senate bills would have to be worked out before the legislation could become law.