WASHINGTON – Congress approved a $168 billion bill to boost the economy, paving the way for more than 135 million households to receive rebate checks for up to $1,200 this spring.
The measure passed the Senate, 81-16, after Democrats dropped demands for billions in extra spending and tax breaks opposed by most Republicans, The Wall Street Journal reported. The House quickly adopted the Senate’s changes to the package last night, 380-34.
Under the final bill, most taxpayers would receive checks of up to $600 for individuals, or $1,200 for married couples, amounts that would begin to phase out at incomes above $75,000 for individuals and $150,000 for married couples.
Millions of people who don’t pay income taxes but have incomes of at least $3,000 would receive smaller rebates of $300, or $600 for married couples. This group would include Social Security recipients and veterans receiving disability payments. People receiving rebates would receive $300 credits for each child.
As part of their compromise, Senate Democrats dropped renewable-energy tax incentives from their bill, as well as a provision that would have allowed companies such as home builders to get tax refunds from past years when they were profitable. The Senate bill retained business tax breaks also in the House bill. Valued at $45 billion this year, the breaks would allow businesses to write off equipment purchases more quickly and give small firms greater ability to write off their expenses.
The legislation also would raise loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration.
Democrats promised to press further housing and economic-recovery legislation, in the hope of reviving some of the ideas that didn’t make it through. They said they wanted to raise the amount of tax-exempt mortgage-revenue bonds that states can offer to help fund low-income housing and low-interest mortgages, among other changes.
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