Economic stimulus bill stuck in Senate

WASHINGTON -- The economic stimulus bill that President Bush says will hasten recovery from recession appears dead in the Senate and will probably be shelved, Senate Majority Leader Tom Daschle said Tuesday. \nDaschle, D-S.D., said neither Republicans nor Democrats will have the 60 votes necessary to win approval of their competing measures -- and that the Senate will take up other business on Wednesday. \n"It's with great regret I will pull the bill tomorrow," Daschle told reporters Tuesday. \nDaschle's comments would seem to seal the doom of legislation President Bush has been pushing since October to boost an economy that began a downturn in March and was rocked again by the Sept. 11 terror attacks. \nThe House passed economic stimulus measures twice last year, but both foundered in the Senate. In January, Daschle tried to resurrect the issue with a bare-bones package focused on a few popular items, but Republicans sought to attach bigger tax cuts they said would spur growth. \nDaschle blamed the GOP for trying to "score political points" by offering these tax cuts instead of working to compromise. Republicans said it was the Democrats who would not bend. \n"I'm wondering if they would really like to have a genuine compromise," said Sen. Charles Grassley of Iowa, ranking Republican on the Senate Finance Committee. \nThe Senate is scheduled to vote Wednesday on whether to end debate on the stimulus plan, which would require 60 votes. Neither side expects that threshold to be reached. \nEarlier Tuesday, Treasury Secretary Paul O'Neill told the House Ways and Means Committee the U.S. economy is showing signs that the recession is ending and could return to growth rates as high as 3.5 percent by the end of 2002 "if we are able to pass still-needed economic security legislation." \n"We see more and more signs every day indicating that the seeds for a recovery are there, and only need nourishing to speed the process of putting Americans back to work," O'Neill said.