Senate Democrats drop push to add jobless benefits, subsidies

WASHINGTON – Senate Democrats, under pressure from party colleagues in the House of Representatives, agreed Thursday to an economic rescue package that would add checks for Social Security retirees and disabled veterans but leave out extended jobless benefits and additional business subsidies.\nThe package would rush tax rebates of up to $600 for individuals and up to $1,200 for couples to most taxpayers and grant businesses tax cuts in hopes of reviving the economy.\nLeaders in both parties and in both chambers of Congress had agreed by Wednesday night on the idea that 20 million seniors whose sole or main income is Social Security and 250,000 veterans living off disability benefits should be added to those getting rebates under the $161 billion stimulus bill, first negotiated by House Democrats and \nPresident Bush.\nSenate Democrats led the way in covering those two politically powerful groups – while the White House and Senate Republicans pressed to have the House measure passed by the Senate without change. But Senate Democrats also had insisted on adding 13 weeks of added jobless benefits, home heating subsidies and new tax refunds for coal producers and struggling corporations.\nNow, Democratic senators are backing away from those additional demands, paving the way for a Senate vote as early as Thursday.\n“Discretion is the better part of valor. The best thing for us to do is declare a big victory that we’ve achieved, namely getting the rebate checks to 20 million seniors and 250,000 disabled veterans,” said Senate Finance Committee Chairman Max Baucus, D-Mont.\nAdding all of the Senate Democrats’ demands plus the rebates for seniors and veterans would have boosted the stimulus package’s total cost to $205 billion, an amount likely to have produced a record federal deficit this year.\n“We’re getting close to finalizing what I think is an agreement everyone can feel comfortable with,” said Sen. Mitch McConnell, R-Ky., the minority leader.