Congressional Leaders Reach Deal On Economic Rescue Plan

Taxpayers earning $75,000 a year or less could get rebate checks of up to $600.

Congressional leaders announced on Jan. 24 that they had agreed on the outlines of an economic rescue package that would feature $100 billion in rebate checks sent to middle- and lower-income taxpayers by late spring.

The package also includes a provision to make refinancing mortgages easier by raising the limit to $625,500 for most government-backed housing loans. That is expected to make more funds available to homeowners in expensive real estate markets such as Southern California who want to get out of their adjustable rate mortgages.

"We will bring it to the floor as soon as possible so we can get those checks in the mail," Pelosi said at a news conference, flanked by Boehner and Treasury Secretary Henry M. Paulson Jr. "This was done in record time."

Details were still being finalized but it appeared likely that the rebates -- $300 to $600 per filer -- would go to taxpayers who earn $75,000 a year or less. Couples who file jointly would receive as much as $1,200 as long as they earned less than a total of $150,000 a year. The size of the rebates would be phased out at income levels above those limits.

In addition, families eligible for the rebates would receive an additional $300 per child. Roughly 117 million households would get a check, the leaders said.

Congressional leaders agreed to about $40 billion in temporary tax incentives to help businesses expand and create jobs. The plan would permit businesses to write off half of the money they spend on capital expansion in 2008.

Leaders have set a Feb. 15 deadline for passing the legislation, which is designed to forestall or soften a feared economic recession.

The details are far from final. The package must first pass the House but then would need to be considered in the Senate, where Democrats said they would make a push to include expanded unemployment and food stamp benefits.

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