FACTBOX: Possible economic stimulus bills in Congress

Mon Nov 3, 2008 9:01am EST
 
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(Reuters) - The U.S. Congress might consider new legislation in mid-November to stimulate the economy if leaders decide to hold a short post-election session.

The measure would follow on the $168 billion stimulus, mostly tax rebates, that Congress and President George W. Bush enacted early this year.

So far, the Bush administration has been cool to the idea of a second legislative jolt for the economy, but Democrats pushing the idea got a boost on October 20, when Federal Reserve Chairman Ben Bernanke said the concept of a second stimulus plan made sense.

Much depends on the outcome of Tuesday's presidential and congressional elections. If Democrats capture the White House with a win by Sen. Barack Obama and if they pick up a lot of seats in the House of Representatives and Senate, they likely will be emboldened. Further evidence of job losses and a weakening economy also could add support for moving quickly.

If Republicans hold the White House with a win by Sen. John McCain, Democrats in Congress might have a harder time pushing the kind of broad bill they have been discussing.

The following are some of the options and their potential costs.

THE HOUSE PLAN

On September 26, the House easily passed a $60.8 billion bill that focused largely on infrastructure projects to repair aging roads and bridges to create new construction jobs. It also would have extended jobless benefits for the long-term unemployed. But a similar measure died in the Senate, amid Republican opposition. House Speaker Nancy Pelosi could try pushing the bill again in mid-November.

MODIFIED HOUSE DEMOCRATS' PLAN

While it is still being developed, Pelosi has talked about $150 billion or so in new stimulus that could draw on some of the ideas Obama has backed as well as elements of the bill the House passed on September 26.

HOUSE REPUBLICANS' PLAN

House Republican leader John Boehner has criticized the Democrats' approach, saying it would not create jobs in the short-term and would add significantly to mounting budget deficits. He has proposed measures including incentives for the U.S. energy sector and lower corporate taxes.

THE MCCAIN PLAN

As analyzed by the nonpartisan Committee for a Responsible Federal Budget, Republican presidential hopeful Sen. John McCain would spend $52.5 billion on measures that would include a temporary cut in capital gains taxes, the elimination of taxes on unemployment benefits and allow for more deductions for capital losses

THE OBAMA PLAN

According to CRFB, under Obama's plan the government would spend around $190 billion for another round of tax rebates, aid to states and small businesses, more loan guarantees for automakers and help for those holding troubled home mortgages. As part of the plan, he would spend $25 billion on infrastructure investment and $40 billion in tax credits to encourage companies to hire more full-time workers in the short-term. Like the House-passed bill, long-term unemployed facing the loss of benefits would get more help.

(Reporting by Richard Cowan; Editing by Dan Grebler)

 

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