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WASHINGTON : The US House of Representatives approved an economic stimulus package on Tuesday worth an estimated 150 billion dollars aimed at shoring up faltering growth, as senators began debating a separate plan.
The bill, which came from a compromise between the White House and bipartisan leaders in the House, now moves to the Senate, where modifications are being considered.
Both plans would include tax rebates sent to households in an effort to stimulate consumer spending along with business tax breaks aimed at encouraging investment.
Treasury Secretary Henry Paulson praised House members for their quick action and urged the Senate to do likewise.
"If enacted quickly, as I hope it will be, the House package will inject money into our economy in time to help create more than 500,000 jobs before the end of the year," Paulson said.
"I am confident that Senate leaders understand that speed and simplicity are key to getting a bipartisan agreement enacted. The time to act is now."
But Senate leaders late Monday proposed their own version of an economic stimulus programme, threatening to delay the compromise plan agreed last week by President George W. Bush's administration and the House.
Senate Finance Committee chairman Max Baucus unveiled his plan estimated at 156 billion dollars, which would offer a different level of tax rebates from the programme being considered in the House. Both chambers must pass identical legislation to send a measure to the White House.
The Senate plan would add extended unemployment insurance while offering lower rebates for most taxpayers than the package in the House.
The Baucus plan would provide a 500-dollar rebate to all Americans making at least 3,000 dollars in annual income, 200 dollars more for the lowest-wage earners than the House provided in the package unveiled last week.
But it would offer less for higher-income earners, which would see a maximum of 1,000 dollars per family compared with 1,200 dollars in the House plan.
Baucus, a Democratic lawmaker, said the definition of qualifying income will include Social Security benefits as well as wages, which should allow more senior citizens to receive a check.
"My proposal will give America's seniors the same rebate as any wage earner," Baucus said in a statement.
Both plans would give families an additional 300 dollars per child under age 17. The plans also include a variety of business tax breaks aimed at stimulating investment.
Bush, after a rare agreement with Democratic leaders in the House, has been urging lawmakers to act quickly on the plan to help provide a quick jolt to an economy some see as falling into recession.
The White House and some lawmakers have urged the Senate to avoid tinkering with the plan, saying speedy action is needed to help the economy.
Baucus said his committee would consider the plan on Wednesday. He said the new effort should not lead to a delay of passage of a plan.
"The White House says we mustn't slow the economic stimulus agreement down, or blow it up. I agree," he said.
"We're going to improve it and get it passed right away."
Republican Senator Judd Gregg meanwhile said the plans are flawed and may not help boost the economy.
"Just taking a large amount of cash and putting it on the table for people ... may not stimulate our economy," Gregg said on the Senate floor.
"If somebody goes out with their 600-dollar rebate and they buy a television made in China, or they buy an iPod made in Vietnam ... if the product isn't actually physically produced here, you are not stimulating our economy, you are stimulating the economy where the product is produced," Gregg said. - AFP/de
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