Dems draft second stimulus package

Senate Democrats are planning a new economic stimulus package that could come to the floor as soon as July — in the heat of the general-election season.

Sen. Charles Schumer (D-N.Y.) said Wednesday that the “broad outlines” of a proposal are now being developed. The legislation could contain measures beyond further rebate checks for taxpayers, such as funding for infrastructure projects, an extension of unemployment insurance and assistance to the states.

{mosads}“But depending on the state of the economy, we would certainly entertain rebates as well,” said Schumer, the vice chairman of the Senate Democratic Conference. “I’m speaking for myself, but I think I mirror the leadership here. To just do rebate checks again without some more serious structural issues … would not have the kind of punch it needs.”

Schumer later said the package would not be considered until after Congress returns in July from its Independence Day recess.

“The checks are just coming out now, and we don’t know how much punch it’s giving the economy,” he said of the first round of rebate checks that were approved by Congress and President Bush in February.

The latest move could create an election-year skirmish between the two parties and their presidential candidates, Sens. Barack Obama (D-Ill.) and John McCain (R-Ariz.). The two have spent the week sparring over the economy, and Obama has called for a second stimulus package that includes another rebate check and tax breaks for seniors and the middle class. McCain says his opponent's plan would lead to a tax hike across the economy.