The Associated Press
Democratic and Republican congressional leaders reached a tentative deal Thursday on tax rebates of $300 to $1,200 per household and business tax cuts to jolt the slumping economy.
Congressional officials close to the negotiations said House Speaker Nancy Pelosi and Republican Leader John Boehner of Ohio reached agreement in principle in a telephone call Thursday morning.
The officials, speaking on condition of anonymity, said the two wanted key members of their parties to sign off on the approximately $150 billion accord before any announcement.
The development came as the Bush administration, which also has been pushing for a deal, said agreement seemed imminent. “Our understanding is there is no final deal yet but they are making progress,” presidential spokeswoman Dana Perino said early Thursday.
Under the tentative plan, families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200, according to a senior House aide who outlined the deal on condition of anonymity in advance of formal adoption of the whole package. Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less.
Workers would have to have earned at least $3,000 in 2007 to receive the rebates, officials said.