Reid, McConnell Reach Deal On Economic Stimulus Package

Bowing to political reality, Senate Majority Leader Harry Reid (D-Nev.) and other Senate Democratic leaders reached agreement on Thursday with their GOP counterparts on a $161 billion stimulus package designed to restart the stalled U.S. economy.

Reid and Finance Committee Chairman Max Baucus (D-Mont.) had sought to add extended unemployment benefits and additional business incentives to the package, but faced with strong opposition from Senate Republicans, as well as pressure from Speaker Nancy Pelosi (D-Calif.) to reach a quick settlement, Reid cut a deal that should speed the stimulus legislation package to President Bush’s desk in days.

Senate Democrats, however, were able to add provisions to the stimulus package giving tax rebates to more than 20 million seniors who live off their Social Security benefits, as well as disabled veterans. Senate Minority Leader Mitch McConnell (R-Ky.) had already backed those efforts, estimated to cost an additional $9 billion, accoring to the Associated Press.

Additional language barring illegal immigrants from receiving tax rebates was also added to the legislation.

The Senate was slated to vote on the stimulus bill on Thursday afternoon, and the House was poised to approve the bill later that night.

Under the bipartisan agreement, taxpayers will get rebate checks of $600 t0 $1,200, and businesses will get new tax breaks.

“It’s our responsibility to pass the strongest bill that we can, and so I think it’s tremendous what we’ve been able to accomplish,” Reid told reporters Thursday. “Overall, we are very happy that the vast majority of the United States Senate agreed that we have to change the economic direction of this country, and we’ve done that. Have we changed it as much as we wanted to? The answer is no. Have we changed it? The answer is yes. Are we gonna change it more in the future? The answer is yes.”
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