Daschle Readjusts Budget Proposal

Senate Majority Leader Tom Daschle (D-S.D.), in a letter Tuesday to President Bush, proposed setting aside some Democratic and Republican priorities to immediately approve parts of an economic stimulus package with broad bipartisan support.

Daschle would extend unemployment benefits, give tax rebate checks to people who missed out last year, increase new investment tax write-offs for businesses and give cash-strapped states more federal Medicaid money.

Democrats would drop plans to raise unemployment benefits and subsidize health care premiums for the newly jobless. Daschle would omit GOP priorities such as accelerating the income tax cuts enacted last year and repealing the corporate alternative minimum tax.

Daschle’s proposal would cost the federal treasury $69 billion this year and $7 billion next year. The GOP plan would cost $200 billion over five years.