On January 24, the Senate began consideration of an economic stimulus package (H.R. 622) proposed by Sen. Tom Daschle (D-SD). The scaled-down Daschle proposal would provide a $300 tax rebate to those who did not qualify under last year’s tax cut package (P.L. 107-16), tax deductions for businesses for equipment purchased this year, a 13-week extension of unemployment benefits, and $5 billion for Medicaid funding to states. The package would cost approximately $70 billion in FY2002.
The Senate approved a motion by Sen. Daschle to take up an adoption tax credit measure (H.R. 622) and replace its language with the economic stimulus plan. The adoption tax credit bill, enacted as part of last year’s tax cut package (P.L. 107-16), was used as a procedural vehicle to bring the economic stimulus proposal to the Senate floor.
The House passed legislation (H.R. 3529) designed to boost the faltering economy on December 20, 2001 (see The Source, 12/20/01, p. 3). While a similar bill was approved by the Senate Finance Committee (see The Source, 11/9/01, p. 1), Senators were unable to overcome procedural barriers during floor consideration and set the measure aside.
