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US economy plan 'compromise' near US lawmakers reach stimulus deal
(about 8 hours later)
Negotiations on US President Barack Obama's economic stimulus package are "very close" to ending, a senator says. Members of both houses of Congress have reached a deal over US President Barack Obama's economic stimulus plan.
A compromise package of $789bn (£549bn) - reduced from Mr Obama's proposed $900bn - has been reached, Democratic Senator Max Baucus told reporters. Senate majority leader Harry Reid said the deal "bridged differences" between an $820bn House version of the bill and a $838bn Senate version.
He said it was likely the House of Representatives would vote on Thursday, with the Senate voting on Friday, ahead of Mr Obama's weekend deadline. The package, now worth $789bn (£549bn), includes tax cuts and spending aimed at rescuing the US economy.
The Senate and the House have approved different versions of the package. Votes on the final bill - which the president welcomed as a "hard-fought compromise" - could come on Thursday.
"The votes are there for passage," the senator told reporters. Mr Obama is poised to sign the bill into law as soon as Congress passes it.
SENATE BILL: KEY POINTS Tax cuts for working families: $247bnJob-creating investments in infrastructure and science: $165bnJob-creating investments in health: $153bnJob-creating investments in education and training: $138bnJob-creating investments for an energy independent America: $82bnJob-creating investments tax cuts for small businesses: $21bnHelping Americans hit hard by the economic crisis: $72bn Source: Senate Appropriations Committee class="" href="/1/hi/business/7874407.stm">Q&A: Stimulus plan The House of Representatives approved its version of the package last week, worth $825bn, without any Republican support. "I want to thank the Democrats and Republicans in Congress who came together," he said, "with the urgency that this moment demands."
The Senate voted 61-37 to approve its $838bn version on Tuesday, with few Republicans opting to back it. Mr Reid, a Democrat, said the stimulus bill should create 3.5 million jobs.
The two different versions of the bill have to be reconciled in a joint House-Senate committee before facing a final vote. He added that more than one-third of it would be dedicated to tax cuts and incentives for middle-class Americans.
Mr Baucus, who heads the Senate Finance Committee and is involved in the negotiations, said the revised figure was $789bn. "The middle ground we have reached creates more jobs than the original Senate bill and costs less than the original House bill," said Mr Reid.
There could still be minute changes but "they're just tinkers, that's all they are", he added. The US stock market ended the day slightly higher following the announcement.
About one-third of the package being considered is composed of tax relief, with the rest devoted to spending on infrastructure projects. Negotiations needed
Broadly, Republicans want more tax relief and less spending, and they complain that some projects would do little to stimulate the economy or create jobs. The House approved its $825bn version of the package last week without any Republican support.
Democrats say the spending Republicans are calling wasteful amounts to a tiny percentage of the overall package. The Senate voted 61-37 to approve a different $838bn version on Tuesday, with few Republicans opting to back it.
The two versions had to be reconciled in a joint House-Senate committee before facing final votes in the two chambers.
President Obama increased the pressure on Congress this week, saying they should show bold and swift action. The president has said he wants the bill on his desk ready to sign by this weekend.
The bill includes help for victims of the recession in the form of unemployment benefits, food stamps, health coverage and more, as well as billions for states that face the prospect of making deep cuts in their own public spending.
The bill includes help for victims of the recessionThe BBC's Richard Lister, in Washington, says it is one of the most expensive pieces of legislation ever to come before the US Congress and it has caused bitter partisan divisions.
Republicans wanted something half the size comprising mostly tax cuts, while many Democrats wanted more money spent on America's infrastructure.
There could still be some tinkering with the plan before it comes to the vote, our correspondent says.
Vice President Joe Biden said the passage of the bill would be an important psychological moment for the country as it grapples with the economic downturn.
"It is the thing that will kick-start the confidence, the psychology that we can climb out of this," he said.
Senator Max Baucus, a Democrat from Montana and one of the negotiators, said earlier that 35% of the total would be in the form of tax cuts.