Obama economic plan now tops $900B - KWWL - Eastern Iowa Breaking News, Weather, Closings

Obama economic plan now tops $900B

Posted:

WASHINGTON (KWWL) - Senate Democrats have passed legislation they hope will keep auto assembly lines moving.

Senators voted 71-26 to give a tax break to many new car buyers. The measure was approved despite bipartisan concerns about the cost of the stimulus package. It now tops $900 billion.

The car purchase deduction is being sponsored by Maryland Democrat Barbara Mikulski. Her office says the cost of the tax break would be about $11 billion over 10 years. It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and through Dec. 31 of this year.

Wednesday's session meanwhile could produce some generous savings for homebuyers. GOP Sen. Johnny Isakson is pressing for a tax credit of up to $15,000 for everyone who buys a home this year, at a cost of $18.5 billion. The pending measure would award a $7,500 tax credit only to first-time homebuyers.

Online Executive Producer Nate Leding

Powered by Frankly