White House says can't support Senate housing bill

WASHINGTON (Reuters) - President George W. Bush cannot support a homeowner rescue bill drafted by Senate lawmakers because it contains too many costly and extraneous elements, his spokeswoman said on Tuesday.

Specifically, the White House rejects provisions that would give a tax break to buyers of foreclosed homes and provide other tax breaks, said White House spokeswoman Dana Perino.

"We have serious concerns that these elements and others would do little to help homeowners avoid foreclosure or reduce housing inventory," Perino said.

The legislation is being debated in the Senate this week and could face a vote on Tuesday or Wednesday. The bill was a compromise between Democrats and Republicans who are facing pressure to staunch the flow of home foreclosures that could be pushing the national economy into a recession.

The U.S. House of Representatives is due to take up its own version of a housing aid bill in coming days. If the president opposes the measures drafted on Capitol Hill, lawmakers will need more votes of support to override any veto.

(Writing by Patrick Rucker; Editing by Tim Dobbyn)