Senate Will Vote on Bailout Tomorrow

Effort to revive plan adds tax cut, raises deposit insurance
By Newser Editors and Wire Services
Posted Sep 30, 2008 7:54 PM CDT
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)
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(Newser) – 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.