Senate to Offer Own Stimulus Package

Baucus said he eliminated the income cap to simplify the rebate structure. House Democratic leadership aides grumbled that Baucus was watching out for the interests of the rich, as they said he did in Bush's first term, when he helped shepherd President Bush's tax cuts through Congress.

Besides shrinking the size of some payments, the Finance Committee also would save money by slightly decreasing the incentives for business investment. But House leaders and tax writers were skeptical yesterday that the Baucus plan could offer all those measures for the $156 billion price tag he put on his bill.

"I don't buy it," said House Democratic Caucus Chairman Rahm Emanuel (Ill.), who helped negotiate the House package.

The cost of either plan would be tacked onto this year's federal budget deficit, and if the price tag rises much higher, House leaders fear, a veto will follow.

To keep the package on a fast track, Reid plans to put the House-approved bill onto the Senate floor, then allow Baucus to replace it with the Finance Committee version. That could take 60 votes, to break a filibuster by proponents of the House-White House compromise.

"Every economist and expert is saying the same thing: In order for stimulus to be effective, we have to get the money into American taxpayers' pockets as quickly as possible," said Kevin Smith, a spokesman for House Minority Leader John A. Boehner (R-Ohio).

But senators from both parties have expressed determination to alter the House package.

Sen. Jim DeMint (R-S.C.), an uncompromising conservative, said yesterday that he will try to add a provision making the president's first-term tax cuts permanent. They are now set to expire in 2011.

"Everyone is in a hurry to pass something quickly, but we need to make sure that it actually works," DeMint said. "We're not going to grow our economy with temporary cash handouts."