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Jan 30, 2008 3:56 pm US/Eastern
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Senate Plans To Extend Tax Rebates To High Earners
Bush Urges Congress To Quickly Pass Legislation
TORRANCE, Calif. (CBS) ―
President Bush acknowledged the economy's weak performance in the fourth quarter, but said Wednesday that it was one more reason the Senate should pass a stimulus package without delay.
"If you're truly interested in dealing with the slowdown of the economy, the Senate ought to accept the House package, pass it, and get it to my desk as soon as possible," Bush said at Robinson Helicopter Co. in Southern California, his first stop on a four-state swing to raise money for GOP candidates and highlight themes of his State of the Union address.
Before he spoke, the Commerce Department reported that the economy nearly stalled in the last quarter, growing by just 0.6 percent, or half the pace economists expected. In the third quarter, the Gross Domestic Product was measured at a brisk 4.9 percent. The big loss came amid worries that the nation was either on the verge of a recession or already heading into one.
The administration, however, remained hopeful that a recession could be avoided.
"I hope you're confident about your economy," Bush said, saying underpinnings of the economy are solid. "I am."
Bush praised the House for its passage of a $146 billion stimulus package and urged Senate Democrats to follow suit. But the measure is running into snags in the Senate.
Before Bush arrived in California, Sen. Charles Grassley of Iowa, top Republican on the Finance Committee, broke with the president and Senate GOP Leader Mitch McConnell, R-Ky., who both want the Senate to approve the same measure the House passed Tuesday.
Grassley said he will support a bill by finance panel Chairman Max Baucus, D-Mont., that would pump $196 billion into the economy over the next two years.
Baucus' plan would make individuals with annual incomes of up to $150,000 and couples with incomes up to $300,000 eligible for rebates of $500 and $1,000. Qualifying families would get $300 more for each child.
The proposed eligibility ceilings compare with income caps of $75,000 for individuals and $150,000 for couples in an economic stimulus bill passed Wednesday by the House.
The measure by Baucus, D-Mont., also would expand rebate eligibility to 20 million senior citizens on Social Security and extend unemployment benefits.
Grassley backs the proposal, which would shrink the rebate to $500 for individuals and $1,000 for couples. It also would deliver checks even to the richest taxpayers, who are disqualified under the House-passed measure.
"I understand people having their points of view, and we welcome points of view in Washington - there appears to be a lot of them up there," Bush said. "But whatever the Senate does, they should not delay this package. They should not keep money out of your pocket."
(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)