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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (13165)	12/13/2001 2:10:45 PM
From: Sully-	Respond to of 99280

Lawmakers in final push to strike US stimulus deal By Donna Smith WASHINGTON, Dec 13 (Reuters) - Congressional negotiators pushed on Thursday to try to strike a deal on a stimulus plan after making earlier progress on the package U.S. President George W. Bush says is needed to help lift the economy out of recession. Negotiators for the House of Representatives and the Senate met as part of a last ditch effort to narrow partisan differences over tax breaks for businesses and individuals, unemployment benefits and health care aid for laid-off workers. Senate Finance Committee Chairman Max Baucus said negotiators decided to work out provisions to help unemployed workers with health care before turning to other difficult issues including tax cuts for businesses and individuals. Baucus and House Ways and Means Committee Chairman Bill Thomas, a California Republican, were upbeat about prospects for a deal after a late meeting on Wednesday. Both lawmakers said significant progress had been made in the talks but that many details remained to be worked out. Bush says the package is needed to ensure recovery from the recession made worse by the Sept. 11 attacks against the World Trade Center and Pentagon. He wants lawmakers to pass the bill before Congress breaks for Christmas next week. White House spokesman Ari Fleischer said Bush was pleased negotiators resumed talks after they stalled last week. ``The president is pleased to see that members of Congress are talking and attempting to find a way out of the gridlock that has met the stimulus discussions on the hill,'' Fleischer said. STICKING POINTS One of the main sticking points is a Republican demand to accelerate individual rate cuts that were part of the $1.35 trillion tax cut passed earlier this year. Senate Majority Leader Tom Daschle of South Dakota Democrat said his fellow Democrats would consider Republican tax cut proposals only after negotiators had dealt with unemployment and health insurance issues. ``The only way we could do that is if we address the increase in unemployment compensation, the increase in eligibility for unemployment compensation involving both part-time workers and late hires, the need to help states pay for health care, and the ability to help unemployed workers pay for their own health care with this 75 percent tax credit,'' Daschle said. Republicans want to lower the 27 percent tax rate to 25 percent four years earlier than scheduled under the earlier tax cut. A Democratic aide said Daschle would consider speeding the 27 percent rate reduction to 26 percent. But Daschle said it would be very difficult to sell an accelerated rate cut to fellow Democrats who are worried about Social Security fund and deepening federal budget deficits. There is general agreement that businesses should be allowed to write off purchases of computers and other equipment faster and use current losses to reduce tax bills from the previous five years. Lawmakers also agree on giving cash rebates to people who did not benefit from income tax rebates sent out earlier this year. But the two sides still have to settle differences over the corporate alternative minimum tax and whether it should be repealed or scaled back and by how much. Under the administration's latest proposal, the corporate alternative minimum tax would be reduced rather than repealed.