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$150 billion fiscal stimulus package to House approval by early Feb 08

US President and House leaders have agreed on a deal on Thursday for a $150 billion fiscal stimulus package, including rebates for most tax filers of up to $600 for individuals, $1,200 for couples and, for families, an additional $300 a child reports New York Times.

During intense negotiations both side agreed on numerous compromises to secure the deal. The House is expected to approve the package and it is expected that by Feb 15 it would be sent to the President for signature.

The paper further reports that full rebates of up to $600 or $1,200 would be paid to individuals earning up to $75,000 adjusted gross income or couples filing jointly and earning up to $150,000. Above that, rebates would be reduced by 5 percent for each $1,000 in income.

On the business side, a package, which would cost $42.3 billionin 2008 would be used for giving 50% bonus deduction on new equipment that would normally be depreciated over many years. This measure is expected to encourage spending.

To help the mortgage market the plan would allow government-sponsored mortgage-finance companies, to buy more loans then the current level.

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