Thursday, Jan 15, 2009
Democratic leaders in the U.S. House of Representatives will push for quick passage of a $825 billion economic stimulus bill being unveiled on Thursday.
The massive bill will contain $550 billion in spending initiatives designed to create jobs and reverse the slide of a U.S. economy in recession, according to a document obtained by Reuters. It also contains $275 billion in tax benefits to workers and businesses.
Changes to the measure could come next week, when two House committees review the legislation before sending it to the full chamber for debate and passage, possibly by the end of January.
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One of the tax proposals aims to get cash flowing immediately to home builders and others hit hard by a housing-market bust more than one year into an economic recession. It would allow businesses to write off current losses against the past five years of taxes. Current law provides for a two-year window for the write-off.
But financial firms that have benefited from a $700 billion government bailout program would not be allowed to claim the enhanced tax break.