Senate Democrats unveil economic stimulus plan

By Jonathan Karl
CNN Washington Bureau

WASHINGTON (CNN) -- Amid intensifying partisan wrangling, Senate Democrats Tuesday unveiled their plan to stimulate the sagging economy, while Republicans vowed to use all "resources at our disposal" to defeat it.

The Democrats' plan, which would cost $87 billion in fiscal 2002, includes:

-- $14 billion in payments to low-income workers ($300 for individuals, $600 for married couples filing jointly) who did not receive tax rebates earlier this year

-- $22 billion in tax breaks for businesses, including $2 billion for businesses in New York City

-- $14 billion to extend unemployment benefits for 13 weeks

-- $7 billion to help the unemployed pay for health insurance. Under the plan, the federal government would subsidize 75 percent of the cost of COBRA health coverage

-- $6 billion in agriculture spending

-- $20 billion in "infrastructure security spending" ranging from bioterrorism preparedness to highway construction

Senate Republicans dismissed it as too expensive and too ineffective, even before Democrats revealed all the details of the their plan.

"Has the president asked for this? No," Senate Minority Leader Trent Lott, R-Mississippi, said of the $20 billion the Democrats proposed for spending on infrastructure security.

Accusing the Democrats of trying to "ram through a partisan bill," Lott vowed to use "all resources at our disposal" to defeat it.

Senate Majority Leader Tom Daschle, D-South Dakota, shot back, saying Republicans are unwilling to compromise.

"I think it's amusing the Republicans would call our approach partisan ... It's our Republican colleagues who refuse to allow that bipartisan consensus in the House or in the Senate," Daschle said.

Senate Republicans have proposed a plan that calls for $75 billion in tax cuts and $14 billion in payments to low-income workers who did not receive rebate checks.

In the House, Republicans last month passed by a narrow 216-214 vote a $100 billion bill composed largely of business tax cuts.