Feb 10 (Reuters) - A compromise stimulus package to revive the U.S. economy now hinges on negotiations between President Barack Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid.
The Senate and House of Representatives have passed competing bills calling for $838 billion and $819 billion respectively in new spending and tax cuts.
Obama wants a deal as soon as possible in the range of $800 billion. His main goal will be to see that a compromise bill retains enough Senate Republican support to avoid a new round of procedural hurdles that would slow final passage.
That means the negotiated compromise cannot be loaded with even more government spending.
Passage of a final, compromise bill could come either late this week or next week.
Here are some possible elements of a compromise:
* In a gesture to Pelosi, Obama complained on Monday about how much money for education the Senate had cut and said some should be restored. Last week Pelosi assailed the Senate for removing $16 billion intended to rebuild schools. Obama has now opened the door to a partial restoration. "We need the White House to step in and referee," said an aide to the House Democratic leadership.
* Pelosi has in the past staked out out positions that end up being difficult to sell. Some examples include her failed drive over the past two years to bring all U.S. troops home from Iraq and her inability to stop expanded offshore oil drilling last year. She may now have to give up some of the emergency spending she wants, including some aid to states. But as Speaker of the House, she could insert that money into other bills Congress will debate later this year.
* The Senate bill includes a temporary fix of the Alternative Minimum Tax so that middle-class taxpayers do not get sucked into paying a tax originally aimed at the rich. Taking this tax change out of the economic stimulus bill would knock $70 billion off the cost and score points among moderate House Democrats. They want the tax fix, but unlike the Senate, they also want to pay for it so it doesn't add more government debt. However House Majority Leader Steny Hoyer doubts the Senate would agree to removing the AMT.
* Some key senators predict tax incentives to encourage new auto and home sales could be revised during negotiations.
* Obama, Pelosi and Reid agree time is of the essence. More important than the details, the three Democrats want the stimulus enacted by mid-February to help stem job losses. One House Republican aide acknowledged, "Right now I don't see any major bomb that would blow this thing up." Some Republican aides were even speculating that as many as 20 House Republicans could end up voting for a compromise bill, after none voted for the first version.