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House to seek $825 billion in economic stimulus

(Agencies)
Updated: 2009-01-16 00:18

WASHINGTON – Democratic leaders in the US House of Representatives will push for quick passage of a $825 billion economic stimulus bill being unveiled on Thursday.

A fence is set up around the Capitol Building in preparation for the inauguration of the President-elect Barack Obama, January 14, 2009. [Agencies]

The massive bill will contain $550 billion in spending initiatives designed to create jobs and reverse the slide of a US economy in recession, according to a document. It also contains $275 billion in tax benefits to workers and businesses.

Changes to the measure could come next week, when two House committees review the legislation before sending it to the full chamber for debate and passage, possibly by the end of January.

One of the tax proposals aims to get cash flowing immediately to home builders and others hit hard by a housing-market bust more than one year into an economic recession. It would allow businesses to write off current losses against the past five years of taxes. Current law provides for a two-year window for the write-off.

But financial firms that have benefited from a $700 billion government bailout program would not be allowed to claim the enhanced tax break.

It also includes other tax breaks for business investment and makes good on a campaign pledge by President-elect Barack Obama to give workers a refundable $500 tax credit and $1,000 per couple.

On the spending side, the legislation would spend hundreds of billions of dollars on projects including road and bridge rebuilding and aid to schools. It also invests in health information technology and would give $87 billion to help states with Medicaid health benefits for the poor.