Senate Will Vote on Bailout Tomorrow

Effort to revive plan adds tax cut, raises deposit insurance
By Newser Editors and Wire Services
Posted Sep 30, 2008 7:54 PM CDT
Senate Will Vote on Bailout Tomorrow
Treasury Secretary Henry Paulson walks out of the West Wing of the White House in Washington after his meeting with President Bush yesterday.   (AP Photo)

In a surprise move to resurrect President Bush's $700 billion Wall Street rescue plan, Senate leaders slated a vote on the measure for tomorrow—but added a tax cut plan already rejected by the House. The Senate plan would also raise federal deposit insurance limits to $250,000 from $100,000, as called for by the two presidential nominees only hours earlier. The move to add a tax legislation—including a set of popular business tax breaks—risked a backlash from House Democrats insisting they be paid for with tax increases elsewhere.

But by also adding legislation to prevent more than 20 million middle-class taxpayers from feeling the bite of the alternative minimum tax, the step could build momentum for the Wall Street bailout from House Republicans. The surprise move capped a day in which supporters of the imperiled multibillion-dollar economic rescue fought to bring it back to life, courting reluctant lawmakers with a variety of other sweeteners including the plan to reassure Americans their bank deposits are safe.
(More bailout stories.)

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