House unveils $825 billion stimulus plan

WASHINGTON, Jan. 15 (UPI) -- House Democrats Thursday offered a two-year, $825 billion economic stimulus plan that channels more funds to new spending and less to tax cuts than proposed.

House Speaker Nancy Pelosi described the House bill as a first step in what she said would be intense negotiations with the Senate and the administration of President-elect Barack Obama, The Washington Post reported.

The plan's price tag has just about tripled since the fall. Obama offered a $775 billion package earlier in January and Senate Democrats have predicted their stimulus proposal could reach $850 billion.

If an expected $70 billion alternative minimum tax patch is included in the final legislation, the finished product could top $900 billion and possible reach nearly $1 trillion, the Post said.

Pelosi and Senate Majority Leader Harry Reid, D-Nev., both vowed to deliver a stimulus plan to Obama by Feb. 13.

The House bill includes about $550 billion in domestic spending and about $275 billion in business and individual tax relief. Writers dropped Obama's campaign proposal of a $3,000 tax credit for every new worker hired by U.S. companies, but kept his campaign promise of a payroll tax credit for individuals earning less than $75,000 and couples making less than $150,000.

The proposal also includes adjustments to the child tax credit and education and new home-buyer incentives, energy incentives, healthcare proposals and temporary increases in unemployment and welfare funding, among other things.

Obama plans to discuss the stimulus proposal Friday at a wind turbine manufacturer in Bedford Heights, Ohio.