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Economy & Fed

Senator adds new costs to stimulus package

By Jeremy Grant in Washington

Published: January 29 2008 00:37 | Last updated: January 29 2008 00:37

The political consensus in Washington that produced a $150bn US economic stimulus package last week appeared under strain on Monday night after a senior Democrat unveiled a proposal to add unemployment insurance and include millions of pensioners in any deal.

Senator Max Baucus, the Senate finance committee chairman, proposed a “flat rate” tax rebate of $500 for individual taxpayers with qualifying income of at least $3,000.

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