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House OKs rebates

Senate may modify

Stimulus package would provide $150 billion

January 30, 2008|By Noam N. Levey and Richard Simon , LOS ANGELES TIMES

The House bill also includes a large one-year increase in the size of mortgages that can be backed by the government, making it easier for homeowners to refinance into more affordable mortgages.

Maryland's eight House members - Democrats Elijah E. Cummings, Steny H. Hoyer, C.A. Dutch Ruppersberger, John Sarbanes, Chris Van Hollen and Albert R. Wynn, and Republicans Roscoe G. Bartlett and Wayne T. Gilchrest - voted for the plan.

"This stimulus will put money in the hands of hard-working Americans to give them the help they need and, at the same time, stimulate the economy," Hoyer, the House majority leader, said before the vote.

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Momentum for the stimulus package has built amid growing fears of a recession.

Yesterday, the Commerce Department reported that durable goods orders had jumped by 5.2 percent in December, the strongest showing in five months, suggesting that not all segments of the economy have been infected by the housing market's collapse. But indexes reporting consumer confidence and homes prices both dropped. Also, the International Monetary Fund predicted yesterday that global economic growth would slow from 4.9 percent to 4.1 percent in the coming months.

Citing the grim economic landscape, Senate Minority Leader Mitch McConnell of Kentucky said yesterday a majority of GOP senators would support the bill passed by the House. "The need for speed, the importance of bipartisanship in reassuring the markets and the American people are pretty persuasive arguments to my members," he said.

Many Democratic senators see the bill as inadequate.

Baucus has proposed the most comprehensive alternative to the House bill. He would make smaller rebates available to millions more taxpayers, including seniors living on Social Security, who are not covered by the House bill. Most Americans would receive a $500 check under his plan.

Noam N. Levey and Richard Simon write for the Los Angeles Times. Sun reporter Matthew Hay Brown contributed to this article.

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