Dems’ stimulus plan offers help for seniors

The proposal also includes an additional $300 per child.

MARKETWATCH

SAN FRANCISCO — Senate Democrats proposed a $156 billion economic stimulus package Monday that would include tax rebates for senior citizens and extended unemployment insurance while offering lower maximum rebates than a parallel package in the House.

The Senate plan, spearheaded by Senate Finance Committee Chairman Max Baucus, D-Mont., would provide a $500 rebate to all Americans making at least $3,000 in qualifying income. That’s $200 more for the lowest-wage earners than the House provided in the package unveiled last week, but amounts to $100 less for higher-income earners.

Families would receive double, or $1,000 vs. the $600 to $1,200 family rebate detailed in the House plan.

In another difference from the House proposal, the definition of qualifying income will include Social Security benefits as well as wages, which should allow more Americans to receive a check, Baucus said.

“My proposal will give America’s seniors the same rebate as any wage earner,” Baucus said in a written statement.

Both plans would give families an additional $300 per child under age 17.

Congressional leaders are pushing to agree on legislation to inject cash into the economy quickly as they try to stave off or mitigate a recession. The Congressional Budget Office earlier this month concluded in a study that giving money to lower-income earners had the most profound stimulus impact because they were most likely to spend their rebate checks.

The Baucus plan also extends federal unemployment insurance benefits for jobless Americans in all states by 13 weeks, with additional benefits for workers in states with high unemployment.

In a boon to businesses, the Senate plan would allow businesses that lose money in the economic downturn to write off losses retroactively for as many as five years.

Last week, the White House and House leaders agreed to a $150 billion plan to provide tax rebates to individuals and tax breaks to businesses. The plan, which came together within a week of Congressional hearings on the subject, would shell out rebates to 117 million Americans by giving individuals who paid income taxes up to $600 in rebates, or $1,200 per couple. Lower income workers who earned as little as $3,000 and paid no income tax would receive $300.

The AARP applauded the inclusion of tens of millions of senior citizens who live on Social Security.

“In addition to tax rebates, the Baucus stimulus proposal would help approximately 20 million older Americans who primarily depend on Social Security for retirement income,” said Bill Novelli, CEO for the group, which represents retired Americans.

“This plan would also enhance unemployment insurance, which is especially important for older workers who have a more difficult time finding new employment after a job loss,” Novelli said in a statement.