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US Congress passes giant economic stimulus package

The US Congress has overwhelmingly approved a giant economic stimulus plan sought by the White House amid mounting fears that the world's biggest economy could be sliding into a recession.

Senate and House of Representative lawmakers approved the economic aid package in separate votes, clearing the way for it to be signed into law by US President George W. Bush.

"The president will sign it next week," White House spokeswoman Cynthia Bergman said.

She said an exact date had not yet been announced.

Bush has hailed the package amid a worsening housing market and a dramatic slowdown in US economic growth.

"This plan is robust, broad-based, timely, and it will be effective. This bill will help to stimulate consumer spending and accelerate needed business investment," Bush said in a statement released on Thursday by the White House.

The plan is valued at around US$150 billion and crammed with temporary tax rebates and business incentives.

Tens of millions of Americans are likely to receive tax rebate checks in their mailboxes in coming months after Bush gives the stimulus his official blessing.

US Treasury Secretary Henry Paulson also welcomed congressional approval of the package, saying it would inject money into a stressed economy.

"This package of payments to individuals and incentives for businesses to invest will support our economy as we weather the housing downturn," Paulson said.

Democratic and Republican senators had sparred over different incentives after the House of Representatives passed an initial version of the plan last Tuesday.

The Democratic-controlled Senate approved an amended version of the House measure on Thursday, which senators changed to include tax rebates for low-income retirees and military veterans.

House lawmakers met in an evening session to quickly approve the final amended package.

The plan calls for tax rebate checks of up to US$600 for individual taxpayers and up to US$1,200 for couples, plus additional cash for dependent children.

It also expands financing opportunities in the housing market by allowing Fannie Mae and Freddie Mac, two mortgage finance companies, to purchase or guarantee mortgages larger than US$417,000 up to US$729,750.

Lawmakers said it would not benefit wealthy Americans, as tax relief begins to phase out for individuals earning US$75,000 and for married couples with a combined income above US$150,000.

It will, however, provide "unprecedented" help to some 35 million families who work but make too little to pay taxes, they said.
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