You could get your tax rebate by May

"The American people are not going to have a lot of patience for taking time," Paulson said.

If the Senate gives quick approval, the first rebate payments could begin going out in May and most people could have them by July, he said.

It has become increasingly clear that the economy is teetering on the edge of recession, if it hasn't already gone over that line. The crisis in subprime home loans has hit hard at many lending institutions, cramping credit for almost everyone else. Economic growth has all but disappeared, companies are reporting big losses and Wall Street had been tumbling day after day — even after emergency Federal Reserve rate-cutting — until Wednesday's hopeful talk about the stimulus deal. The Dow Jones industrial average was up more than 100 points Thursday after soaring nearly 300 the day before.

In addition to concerns openly expressed by lawmakers, members of Congress are not eager to run for re-election this fall with voters fearful of losing jobs in a recession.

For businesses, the stimulus measure would allow them to immediate tax write-offs for 50 percent of the purchase price of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. A provision to allow businesses suffering losses now to reclaim taxes previously paid was dropped in end-stage talks.

Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits in exchange for gaining the rebates of at least $300 for almost everyone earning a paycheck, including those who make too little to pay income taxes.

Who gets what How Americans in different financial situations would fare under the rebate plan proposed by House leaders and the White House. — An individual with $2,500 in earned income in 2007: Disqualified because income fell below the $3,000 threshold. No rebate. — A married couple with no children, with adjusted gross income of $100,000 in 2007: Would qualify for the full $1,200 couples. A $1,200 rebate. — A worker with one child, who earned $9,000 and owed no taxes in 2007: Would qualify for the $300 rebate available to individuals who pay no taxes but earned at least $3,000, plus an additional $300 for the child. A $600 rebate. — A couple with income of $145,000 in 2007, with three children: Would qualify for the full $1,200 for couples, plus $300 for each child. A $2,100 rebate. — A couple with income of $160,000 in 2007 with two children: Would qualify for a partial rebate, reduced by 5 percent for every $1,000 in income above the $150,000 threshold. An $1,800 rebate — $1,200 for the couple plus $300 per child — would go down by 50 percent for this family. A $900 rebate. — A couple with income of $200,000 and four children: Disqualified because their income exceeded $174,000, the phase-out limit. No rebate. — An individual with adjusted gross income of $23,000 and no dependents: Would get a rebate of $600. — A couple with adjusted gross income of $160,000 and two children: Would get a rebate of $1,300. — A couple with adjusted gross income of $184,000 and two children: Would get a $100 rebate.

"I can't say that I'm totally pleased with the package, but I do know that it will help stimulate the economy. But if it does not, then there will be more to come," Pelosi said. She said that House Democrats may act on other proposals to stimulate the economy, particularly if it worsens in coming weeks.

Boehner said the agreement "was not easy for the two of us and our respective caucuses."

"You know, many Americans believe that Washington is broken," the Ohio Republican said. "But I think this agreement and I hope that this agreement will show the American people that we can fix it."

Paulson said he would work with the House and Senate to enact the package and declared that "speed is of the essence." He cautioned that "the work is far from over."

The agreement left some lawmakers in both parties with a bitter taste, and they complained that their leaders had sacrificed too much in the interest of striking a deal. Many senior Democrats were particularly upset that the package omitted the unemployment extension.

Majority Leader Harry Reid, D-Nev., said the goal is to send the package to the White House by Feb. 15 for Bush's signature, but he noted the Senate was likely to try to add more spending.

Bush had supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households of people who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Bush's initial proposal.

To address the mortgage crisis, the package raises the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

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