Both Sides Bend A Bit With Imminent Deal On Econ Package

After a late night negotiating, House Democrats, Republican leaders and the White House are ready to cut a deal on an economic stimulus package that allows all taxpayers _ including those who don't pay income taxes _ to receive rebates.

But while the universal rebate is more than what Republicans wanted to offer, Democrats were also expected to offer some concessions, including giving up on a major extension of unemployment insurance and food stamps, according to aides involved in the deal.

Under the tentative agreement, rebates would phase out at $75,000 for individuals and $150,000 for households, meaning upper income people _ including members of Congress themselves _ would not get a rebate. Having a cap at the top of the income brackets would be a key concession by Republicans who believe those who pay the most taxes should get a significant rebate.

The tax rebates could range from $300 for low income individuals to as high as $1200 for a household, according to aides familiar with negotiations.

Congressional aides cautioned that it was too early to say that a deal had been finalized, and the finishing touches will be made over the next day or so as party leaders try to get their rank and file to buy in on a deal.

The effort to add social welfare spending to an economic stimulus package has been a top priority for Democrats and labor unions, and if unemployment insurance benefits are not in the final package, some liberal Democrats may sour on the deal. But Republicans who want tax rebates only for income tax payers may also be upset because low income people are likely to be guaranteed some form of rebate check.

With both sides conceding on issues important to their base, there is potential to upset the delicate bipartisan truce prevailing on Capitol Hill, which is why leaders of both parties want to quickly advance the package before partisan rancor tears down any negotiations.

Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said Thursday morning he hoped to add a major expansion of Fannie Mae and Freddie Mac loan limits into the stimulus, which would add liquidity to the housing market. The current limit for these government sponsored enterprises is $417,000, but there has been a push to raise those limits to as high as $700,000 to boost the housing market.

There are indications already that the Senate _ the world's most deliberative body _ may slow things down when the stimulus package passes the House.

"There are reports that a deal may be close on the House side. The Senate will want to speak, as well," said Sen. Max Baucus (D-Mont.) the chairman of the Senate Finance Committee. "We want to ensure that Congress does its utmost for the American economy and for the American people.”

The Crypt will update throughout the day as details on the stimulus package become available.