A stimulus package is a big topic on the Street today after House Majority leader Steny Hoyer said a stimulus package could be law within a month. Senator Charles Schumer, speaking with our Erin Burnett, said it could involve:
1) Some kind of direct cash rebate, he mentioned $300 to $500.
2) Business tax cuts.
3) Extending unemployment insurance.
Others in Washington I have talked to said it could also involve:
a) Middle class tax rebate ($125-150 billion)
b) Extension of tax cuts for lower 90 percent brackets
c) More money for lower middle class and poor
Attempting to tie the stimulus (which everyone wants) with extending the Bush tax cuts (which only a few Republicans want) is sure to provoke a fight; some kind of compromise alongthe lines of b) above might be in the offing.