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Stimulus package gets House approval

Thu, Jan 31st 2008 12:00 am
By DAVID BERTOLA
Business First

Buffalo-area lawmakers on both sides of the political aisle favor the stimulus plan put forth in Washington.

Shortly after voting on the proposed stimulus plan, which is designed to boost the nation's economy, Rep. Brian Higgins, D-Buffalo, said he thought the measure would pass "overwhelmingly."

The plan was indeed approved 385-35.

Higgins called the plan a short-term targeted stimulus that isn't designed to resolve the structural problems with the economy.

Under the economic stimulus plan proposed by the federal government, taxpayers who file taxes singly would receive a $600 check; those filing jointly would receive $1,200.

Allowances for children could total $300 for each.

"The idea is to target the tax rebate to those most likely to spend the money, injecting a demand that isn't there and couldn't have been accomplished as a regular flow or evolution of the economy."

The plan calls for approximately 116 million Americans receiving checks, which would infuse $150 billion into the economy.

"I'm not an expert, but when an expert tells me that $150 billion will move in here quick to stir (up the economy), then do it," said Rep. Tom Reynolds, R-Clarence.

Reynolds said the natural temptation for leaders is to take this opportunity to add layers to plans such as these.

Doing so could bog down the process. And as time wears on, the impact on the economy would be lessened.

The next steps are to get it approved in the Senate, then signed into law by President Bush, who favors the package.

If other provisions are added, the plan would need to go back to the House and be voted on again.

At this stage, Higgins doesn't anticipate that happening.

"There's a sense of urgency, as the money needs to get into the economy as quickly as possible," he said. "Seventy percent of the economy is consumer spending, which, like growth, has slowed."

Higgins added that some in Washington are speculating that the rebate checks could be sent out as early as mid-May.