Senate Majority Leader Harry Reid, a Nevada Democrat, called the US$146 billion (S$207 billion) bill that passed overwhelmingly in the House on Tuesday a 'good package'.

But Mr Reid said he was supporting a broader bill approved on Wednesday by the Senate Finance Committee.

Mr Reid said he expected the Finance Committee measure to be blocked by Senate Republicans on Monday, which would open the door to votes on several other ideas on stimulating the economy, which some fear could be headed toward recession.

The House-passed bill would give individuals a one-time US$600 payment and couples US$1,200. The tax rebates would begin phasing out for individuals earning more than US$75,000 and married couples making more than US$150,000. The Senate panel would allow for US$500 and US$1,000 payments, respectively, but with much higher income caps and to more people.

The apparently doomed Senate Finance Committee measure would cost US$157 billion next year and would provide quick tax rebates to more Americans and also include senior citizens who receive Social Security retirement benefits but do not have earned income. Tacked onto this package were energy tax benefits not included by the House.

Mr Reid sketched out a series of votes he intends to call next week in the Senate, which could culminate in passage of an amended House bill to include cash payments to 20 million elderly not covered in that measure as well as expanded unemployment benefits and payments to 250,000 disabled veterans.

'I don't think that the Senate wants to deprive 20 million seniors of a rebate check,' said Finance Committee Chairman Max Baucus, a Montana Democrat.

The Senate was expected to begin consideration of the bills passed by the Senate Finance Committee and House as early as Thursday, but Mr Reid decided to postpone action until next week.

With many of the votes expected to be close, Mr Reid said he planned to ask two Senate Democrats running for president - Mrs Hillary Clinton of New York and Mr Barack Obama of Illinois - to interrupt their campaigns and return to the Senate to be counted.

Mr Reid said he expected Senator John McCain, an Arizona Republican running for president, also to be there.

The Bush administration wants the Senate to simply embrace the House bill, which it negotiated this month with Democratic and Republican House leaders. On Thursday, Treasury Secretary Henry Paulson called the Senate Finance Committee measure 'too complex'.

If the Senate passes its own package, differences would have to be resolved with the House and the administration before a final bill could be sent to Mr Bush to sign into law. -- REUTERS