By DPA
Washington : Both chambers of the US Congress overwhelmingly approved a $152-billion economic stimulus package called for by President George W. Bush to prop the slowing economy.
The Senate passed the bill 81-16 Thursday after Democrats agreed to a compromise scaling back the size of the package of tax breaks and benefits.
The stimulus package now heads to Bush’s desk, where it is expected to be signed into a piece of legislation.
Despite the Senate changes, the bill remains largely similar to the deal agreed last month between Bush and Congressional leaders.
In a statement issued Thursday night by the White House, Bush said that he could support the changes made in the Senate. The final legislation was “robust, broad-based, timely, and it will be effective,” he said.
“This bill will help to stimulate consumer spending and accelerate needed business investment,” he added.
Under the plan, most US taxpayers would receive at least a $600 tax rebate check, probably before the end of May. Families could receive as much as $1,200 and an additional $300 for each child.
Treasury Secretary Henry Paulson called it “a bipartisan economic growth package that is temporary, broad-based, and will get money into our economy quickly”.
Bush’s centre-right Republicans blocked a vote on the Senate bill late Wednesday over concerns it was too costly.
The centre-left Democrats, who control Congress, retained tax rebates for 250,000 disabled veterans and 21 million senior citizens living on government pensions.
The Bush administration and Congress have worked closely to create legislation aimed at stimulating an economy hit hard by the housing market crisis, high-energy prices and rising unemployment. The economic woes have sparked worries of a recession.
The Federal Reserve, which sets monetary policy, has warned of slower economic growth for 2008 and has slashed interest rates. The Fed twice cut the key interest rate by a combined 1.25 percentage points to three percent last month.
Economists have said that any temporary tax relief would have to reach consumers quickly to offset a recession, and Bush had urged the Senate to avoid loading up the stimulus package with unnecessary spending.