16 vote capped more than a week of political maneuvering that ended only when majority Democrats dropped their demand that the proposal offer jobless benefits, heating aid for the poor and tax breaks for certain industries. Most Republican senators blocked those ideas, but agreed to add the rebates for older people and disabled veterans to a $161 billion measure the House of Representatives it passed last month. Leaders of the House of Representatives said they would act as early as Thursday night to send the measure to President George W. Bush for signature. The remarkable speed in which the package was approved reflected both the growing concerns about the economy and the political pressures ahead of congressional and presidential elections in November. Americans fear a recession may be looming, given a fall in housing prices, a tightening of credit and a sharp drop in stock prices. The economy has surpassed the war in Iraq as the main concern of U.S. voters. The Senate plan would rush rebates _ $600 (¤412) for individuals, $1,200 (¤824) for couples _ to most taxpayers and cut business taxes in hopes of reviving the economy. Individuals making up to $75,000 (¤51,500) a year and couples earning up to $150,000 (¤103,000) would get rebates. People who paid no income taxes but earned at least $3,000 (¤2,050) _ including through government pensions or veterans' disability benefits _ would get a $300 (¤206) rebate. The bill had stalled for more than a week in the Senate. The turnaround came after Democrats fell just one vote short Wednesday of overcoming Republican delaying tactics and pressing ahead with their $205 billion (¤140.7 billion) plan. Democrats decided on Thursday against insisting on their package. Instead, they agreed to speed the bipartisan measure, costing about $167 billion (¤114.63 billion), to Bush. «It's our responsibility to pass the strongest bill that we can, and so I think it's tremendous what we'll be able to accomplish,» said Majority Leader Harry Reid, a Democrat. «We had to finish this quickly.» The retreat came after the Democratic leader of the House of Representatives, Speaker Nancy Pelosi, sided with Republicans, including Senate Minority Leader Mitch McConnell. Pelosi urged the Senate to stop its infighting and pass the bill. «There's no reason for any more delay on this,» Pelosi said. Reid defended his decision to try to pressure Republicans on the larger proposal by offering it as a take-it-or-leave-it proposition along with the rebates for older people and veterans. «I feel very strongly that we did the right thing,» Reid said. Democrats said Republicans would pay a political price for their opposition. The more expensive proposal would have extended unemployment for 13 weeks for people whose benefits had run out; added $1 billion (¤690 million) in heating aid for the poor; and provided tax breaks for the home-building, renewable energy and coal industries. «If today (Republicans) are squirming because they voted 'no,' that's what democracy is all about,» said Sen. Charles Schumer, the head of the Senate Democratic campaign committee. «The political chips will fall where they may.» But Democratic Sen. Max Baucus, chairman of the Senate Finance Committee, said: «Discretion is the better part of valor. The best thing for us to do is declare a big victory that we've achieved, namely getting the rebate checks to 20 million seniors and 250,000 disabled veterans.» The measure moved through Congress with remarkable speed amid a series of deflating economic reports. Some Republicans, however, expressed reservations that the rebate checks would help much. Other lawmakers worried about expanding the budget deficit. «We have to remember that every dollar being spent on the stimulus package is being borrowed from our children. And our children's children,» said Sen. Judd Gregg, a Republican. 072232 feb 08GMT
