Senator Sees Little Chance for Tax Rebates

Congress is unlikely to approve tax rebate checks this year, seeing less of a need to stimulate the economy, Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) said. He also said the votes aren’t there to lower the highest income tax rates to 33% as President Bush wants. Grassley said the Bush administration “is still trying to find a way” to give taxpayers some of the budget surplus through rebate checks. But he said enthusiasm for it in Congress has waned amid evidence that the U.S. economy grew 2% in the first quarter and questions about how the program would work. “There’s a feeling that maybe that is not needed now,” Grassley said. “You don’t even hear the Democrats talking about it.” Lawmakers could, however, accelerate income tax cuts to provide $100 billion this year and next in tax relief that is part of the compromise budget deal. The committee is searching for compromise on the tax cut elements that would fit into an 11-year, $1.35-trillion package that is much smaller than Bush proposed.