By CURT ANDERSON
AP Tax Writer
WASHINGTON - An economic stimulus plan House Republicans are drafting likely would offer tax rebates for millions of low-income workers who did not qualify for checks sent this summer. Also envisioned are tax breaks for businesses and grants to states for the unemployed.
"The framework is stimulus and recovery," said Rep. Bill Thomas, R-Calif., chairman of the House Ways and Means Committee, which planned to take up the measure Friday.
The new round of rebates would be aimed at estimated 30 million workers whose main federal tax liability is the payroll tax that funds Social Security, Thomas said Thursday. Those workers did not qualify for the earlier checks included in the recently enacted 10-year, $1.35 trillion tax relief measure.
Thomas declined to say how much this group might get, except that the checks would "emulate" those mailed earlier in the year. A congressional source, speaking on condition of anonymity, said the amounts likely would be $300 for individuals, $500 for heads of households and $600 for married couples filing jointly _ identical to the previous checks.
President Bush has embraced the idea of a new round of checks, as have most Democrats, as one way to spur consumer spending and revive a struggling economy weakened further by the Sept. 11 terrorist attacks.
"It's something we're willing to listen to and talk about," said Deputy Treasury Kenneth Dam.
The president has proposed a 13-week extension of unemployment benefits in hard-hit states; the House plan is likely to go further.
Thomas said the package would include flexible grants to states that could be used for unemployment benefits, health insurance premiums for laid-off workers and other needs. One source put the cost at roughly $9 billion.
The committee's top Democrat complained that Thomas consulted little with Democrats even though some of the proposals do mirror Democratic ones.
"I think he shattered the myth of bipartisanship once and for all," said Rep. Charles Rangel, D-N.Y. "We're not negotiating anything."
Other items likely to be included:
_Enhanced expensing write-offs for business capital purchases, likely 30 percent for assets purchased over two or three years.
_No cut in capital gains tax rates but a possibly change in the holding period for investments so that more of them would qualify for the 18 percent tax rate. That rate now applies to investments held longer than five years; a 20 percent rate applies to most held longer than one year.
_Acceleration of income tax rate cuts now set to take effect beginning in 2004 so that they occur in 2002.
_An increase from two years to five years in the time businesses can deduct current losses against past profits.
_A provision in which the asbestos industry, which faces billions of dollars in liability from health-related lawsuits, would be able to deduct losses related to those cases from profits as far back as 25 years.
An official cost estimate was not immediately available, but several congressional sources indicated it would top Bush's suggestion of $75 billion and could reach the $100 billion proposed by Democrats.
Earlier Thursday, House Minority Leader Dick Gephardt, D-Mo., said any stimulus plan must include broad assistance for laid-off workers, including health care aid, as well as spending for infrastructure and security needs. He agreed with Republican leaders that time is of the essence.
"If we delay here for another two, three, four or more weeks it will be impossible for the federal government to get any of these benefits out, whatever they are, to the people who really need them before the holiday season," Gephardt said.
The effort marks the beginning of the legislation process. Any House bill would require approval by the Senate, where there is support.