Stimulus package: needed kick or corporate giveaway?

• $39 billion in tax breaks for business to write off new investment at a faster rate, especially for computers and technology.

Critics concluded that the House plan did not meet the bipartisan criteria for a stimulus. Instead, it gave long-term tax breaks to big companies, without any commitment that new jobs or investments would result.

The repeal of the alternative minimum tax for corporations alone works out to $1.4 billion for IBM, $833 million for General Motors, $671 million for General Electric, $572 million for Chevron Texaco, and so on, according to Citizens for Tax Justice, a public interest group.

"When people find out about this, they're angry," says Micah Sifry, senior analyst with Public Campaign, a Washington-based group that lobbies for campaign finance reform.

Sponsors say that the infusion of cash will encourage investment, albeit indirectly. "Tax adjustments ... will free up money that businesses would otherwise have to send to the IRS, so they can channel it back into the economy," says House sponsor Bill Thomas (R) of California.

With the Capitol still closed to most visitors, much of the usual give-and-take between lobbyists and legislators over the terms of this bill isn't taking place. Some business lobbyists complain that the only place they can meet lawmakers is at a fundraiser. Others worry feel shut out altogether.

"It's very hard to connect with Congress with buildings closed.... For small citizens groups, it's even harder," says Joan Claybrook, president of Public Citizen. "We're having trouble even reading all the bills."

The Senate bill to be taken up today focuses on tax rebates for low-income workers, as well as extending health-insurance coverage and adding 13 weeks to unemployment insurance.

But to win the last few votes needed to get bill onto the floor, Senate sponsors also piled on plenty of special-interest legislation as well. The most controversial is $6 billion in last-minute support for agriculture. This deal includes $220 million to buy agricultural products that had bad crop years in 2000 or 2001 - at least 25 percent of which will be distributed to schools under the School Lunch Act.

Also buried in the Senate bill are tax credits for chicken farmers who convert poultry waste to electricity, and a tax write-off for the movie industry that did not make it into the House bill. Native American tribes also stand to gain new authority to issue tax-exempt private activity bonds.

"What is needed up front is tax cuts tied to increases in activity by businesses or consumers," says Mr. Aaron of the Brookings Institution. "You can count on individuals to spend a significant part of any reduction they may get, but you can't assume that with businesses."

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