Tenative Deal Reached On Tax Rebates

Congressional officials say leading lawmakers and the Bush administration have reached a tentative deal on tax rebates of $300 to $1,200, plus business tax cuts, to stimulate the economy.

Congressional officials close to the negotiations said House Speaker Nancy Pelosi and Republican Leader John Boehner of Ohio reached agreement in principle in a telephone call this morning. The officials say the two House leaders want key members of their parties to sign off on the accord before any announcement.

During last night's talks, Pelosi agreed to drop increases in food stamp and unemployment benefits, in exchange for gaining rebates of at least $300 for almost everyone earning a paycheck.

President Bush is making his State Of The Union address tonight, in which he's expected to address the economy, among other issues.

Posted by Cathryn Khalil, kltv.com.