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Senate Will Vote on Bailout Tomorrow

Effort to revive plan adds tax cut, raises deposit insurance

By the Associated Press

Posted Sep 30, 2008 7:54 PM CDT
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(AP) – 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.

Treasury Secretary Henry Paulson walks out of the West Wing of the White House in Washington after his meeting with President Bush yesterday.
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)
Senate Minority Leader Mitch McConnell, R-Ky., center, talks with Sen. Christopher Bond, R-Mo., left, as they are followed by reporters on Capitol Hill today.
Senate Minority Leader Mitch McConnell, R-Ky., center, talks with Sen. Christopher Bond, R-Mo., left, as they are followed by reporters on Capitol Hill today.   (AP Photo)
President Bush finishes his statement about the economic bailout bill and financial crisis, Tuesday, Sept. 30, 2008, in the Diplomatic Reception Room of the White House in Washington.
President Bush finishes his statement about the economic bailout bill and financial crisis, Tuesday, Sept. 30, 2008, in the Diplomatic Reception Room of the White House in Washington.   (Charles Dharapak)
President Bush leaves the Diplomatic Reception Room of the White House in Washington, Tuesday, Sept. 30, 2008, after making a statement about the economic bailout bill and financial crisis.
President Bush leaves the Diplomatic Reception Room of the White House in Washington, Tuesday, Sept. 30, 2008, after making a statement about the economic bailout bill and financial crisis.   (Charles Dharapak)
President Bush makes a statement about the economic bailout bill and financial crisis, Tuesday, Sept. 30, 2008, in the Diplomatic Reception Room of the White House in Washington.
President Bush makes a statement about the economic bailout bill and financial crisis, Tuesday, Sept. 30, 2008, in the Diplomatic Reception Room of the White House in Washington.   (Charles Dharapak)
Rep. Marcy Kaptur, D-Ohio, left, speaks during a news conference on Capitol Hill in Washington, Tuesday, Sept. 30, 2008, to discuss a financial bailout plan. From left are, Kaptur, Rep. Lloyd Doggett, D-Texas, Rep. Donna Edwards, D-Md., Rep. Mazie Hirono, D-Hawaii, hidden in green, Rep. Bobby Scott, D-Va., and Rep....
Rep. Marcy Kaptur, D-Ohio, left, speaks during a news conference on Capitol Hill in Washington, Tuesday, Sept. 30, 2008, to discuss a financial bailout plan. From left are, Kaptur, Rep. Lloyd Doggett,...   (Susan Walsh)
The Capitol Dome is seen near sunset in Washington, Monday, Sept. 29, 2008. In a stunning vote that shocked the capital and worldwide markets, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, ignoring urgent warnings from President Bush and congressional leaders of both...
The Capitol Dome is seen near sunset in Washington, Monday, Sept. 29, 2008. In a stunning vote that shocked the capital and worldwide markets, the House on Monday defeated a $700 billion emergency rescue...   (Susan Walsh)
Rep. Peter DeFazio, D-Ore, left, arrives for a news conference on Capitol Hill in Washington, Tuesday, Sept. 30, 2008, to discuss a financial bailout plan. From left are, DeFazio, Rep. Marcy Kaptur, D-Ohio, Rep. Lloyd Doggett, D-Texas, Rep. Mazie Hirono, D-Hi., and Rep. Rush Holt, D-N.J.
Rep. Peter DeFazio, D-Ore, left, arrives for a news conference on Capitol Hill in Washington, Tuesday, Sept. 30, 2008, to discuss a financial bailout plan. From left are, DeFazio, Rep. Marcy Kaptur,...   (Susan Walsh)
Senate Majority Leader Harry Reid, D-Nev., and Secretary of the Treasury Henry Paulson, right, on Sunday.
Senate Majority Leader Harry Reid, D-Nev., and Secretary of the Treasury Henry Paulson, right, on Sunday.   (AP Photo)
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Harry Reid • Mitch McConnell • bailout • financial crisis • deposit insurance

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