A key Senate panel today voted 14 to seven for an economic stimulus package worth $US157bn (₤79bn) over 10 years, expanding tax breaks beyond those approved by the House of Representatives yesterday at $US147bn. The full Senate is expected to take up the economic stimulus package later today.

‘This package will put rebates into the hands of 20 million additional American seniors, plus lower-income payroll taxpayers and disabled veterans – all of whom will spend this money quickly and give our economy the shot in the arm that it needs,’ Senator Max Baucus, Senate Finance Committee chairman, said.

The package doubles the income ceiling for people receiving rebates, to $US150,000 for an individual and $US300,000 dollars for a married couple but reduces the rebates to $US500 for an individual and $US1,000 for a couple, compared to $US300 yo $US600 for an individual and $US1,200 for a couple under the House version, according to Agence France-Presse.

While the House version made rebates available only to those with an income of at least $US3,000 dollars, the Senate version said that figure can include social security and veterans disability benefits, effectively increasing the reach of the benefits to more than 20 million more people, especially retirees.

Further reading:

Bush calls for tax cuts to stimulate economy