House Dems, GOP seek consensus on economy

WASHINGTON, Jan. 16 (UPI) -- U.S. congressional Democrats said they would consider an economic stimulus plan with small-business tax cuts and consumer rebate checks, and no tax hike.

House Democrats and Republicans pledged to work together to jump-start the nation's listless economy, The Washington Times reported Wednesday.

"The conversation between Congress and the administration will continue as we develop an economic stimulus plan that is timely, targeted and temporary and one that restores confidence -- consumer confidence and confidence in the market," House Speaker Nancy Pelosi, D-Calif., said after a teleconference with Treasury Secretary Henry M. Paulson Jr.

House Republican leaders gave Pelosi and Senate Majority Leader Harry Reid, D-Nev., credit for seeking common ground to revive the economy.

The Republicans, in turn, ditched their demand to extend President George W. Bush's 2001 and 2003 tax cuts due to expire in 2010, the newspaper said.

But tax hikes -- including "tax increases disguised as 'offsets' in order to comply with Congress' (pay-as-you-go) rule, as well as pork-barrel spending that may be attached to the package in the name of 'emergency spending,'" -- are off the table, said House Minority Leader John Boehner, R-Ohio and Minority Whip Roy Blunt, R-Mo., in a letter to Pelosi.