Reid objects to giving rebates to the wealthy

WASHINGTON -- Senate Majority Leader Harry Reid said he wanted to gag when he heard wealthy taxpayers might get a rebate from an economic stimulus bill being considered in the Senate.

"To take off the (income) caps causes me to want to gag," the Nevada Democrat said Tuesday.

It would be "ill advised" to give $500 to $1,000 rebates to billionaires like Warren Buffett, he said.

"I think it would send the wrong message that we would spend an extra $5 billion to give (people like) me a rebate. I'm not going to spend the money," said Reid, who is among the richest members of Congress.

The proposal was part of an economic stimulus bill unveiled this week by Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee.

The Baucus plan differs from the stimulus bill that passed the House of Representatives on Tuesday.

Among other things, the House bill would start phasing out refunds of $600 for individuals with incomes of more than $75,000, and phase out $1,200 rebates for couples after $150,000.

Baucus would offer rebates to a broader group of Americans. He said he removed the income cap to simplify the rebates.

Reid said Baucus heard objections from many Democratic senators Tuesday during their weekly luncheon.

If the Senate Finance Committee passes the economic stimulus package without income caps, there will be an attempt to reinstate them when the bill comes to the Senate floor, Reid said.

"Senator Baucus heard from a wide range of senators today that they feel that the gag reflex is coming upon everybody," Reid said.

Reid said he would support giving more rebates to lower income Americans such as those living off Social Security. He also said he would favor extending unemployment benefits.

The House voted 385-35 Tuesday to pass its economic stimulus package. Reps. Shelley Berkley, D-Nev., and Dean Heller and Jon Porter, both R-Nev., voted for the bill.

The Senate Finance Committee is scheduled to vote today on its version of the economic stimulus package, and Reid said he hopes the Senate can begin debating the bill tonight.

Contact Stephens Washington Bureau reporter Tony Batt at tbatt@stephensmedia.com or (202) 783-1760.