White House open to compromise on stimulus plan

By Donna Smith

WASHINGTON (Reuters) - The White House on Tuesday opened the door to expanding an economic stimulus plan to revive the ailing U.S. economy when a top official offered to extend a tax rebate to some 20 million retirees and disabled veterans.

"We recognize the difficulties that low-income seniors and veterans are facing and I'm sure we will be able to work something out, get something quickly done that is broad-based," Treasury Secretary Henry Paulson told the Senate Finance Committee.

The two groups were been included in a bill passed by the House of Representatives, with White House backing, meant to jolt the economy and fend off a slide into recession.

But Paulson said the administration opposed some provisions in a parallel bill passed by the Senate Finance Committee last week, which included extra unemployment benefits and tax credits for some renewable energy resources.

That bill did extend rebates to retirees on Social Security and disabled veterans.

Three senators running for president -- Republican John McCain of Arizona and Democrats Hillary Clinton of New York and Barack Obama of Illinois -- arranged to return to Washington on Wednesday as the Senate prepared for a showdown vote later in the day on the Finance Committee bill.

Sixty votes would be needed in the 100-member Senate to move to end debate and head toward passage of the measure. It was uncertain if backers could muster that much support -- or what would happen next if they failed to do so.

The White House had been pushing for quick passage of the House bill that Paulson negotiated with House Democratic and Republican leaders. Lawmakers are under increasing pressure from retirees and home builders to accept the Senate Finance Committee version.