WASHINGTON -- In a historic vote, the Senate approved a massive $700 billion rescue plan for the nation's finance system Wednesday night, but only after tacking on another $110 billion in tax breaks to lure votes from both parties.

A strong bipartisan majority rallied behind the controversial Wall Street bailout package, passing it by 74-25.

The vote sends the measure to an uncertain fate in the House of Representatives, where lawmakers rejected the original version on Monday, 228-205. A new House vote is expected Friday, and many lawmakers in both parties there remain opposed to it.

President Bush, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke have warned repeatedly that failure to act will allow vital credit markets to freeze up, forcing employers to lay off massive numbers of employees and plunging the economy into recession and perhaps even another Great Depression.

Senators of both parties, including Democratic presidential nominee Barack Obama of Illinois and Republican presidential nominee John McCain of Arizona, said that threat made it imperative for Congress to pass the financial-rescue package. They both voted yes.

''Inaction is not an option,'' said Senate Majority Leader Harry Reid of Nevada. ``This is -- I repeat -- a crisis. . . . We've got to get this done. ``

Senate Republican Leader Mitch McConnell of Kentucky agreed. ``The question is not how we got here, but how we get out, `` McConnell said.

Not all senators went along.

NELSON OPPOSED

Florida Democrat Bill Nelson opposed the measure, saying it ``rewards the banks and leaves the little person with the short end of the stick.''

He said the bill ``forces taxpayers to bail out investment banks that caused the crisis in the first place and does nothing to address the real problem, which is home foreclosures . . . .''

''I think Congress can do better,'' Nelson said.

Florida's Republican senator, Mel Martinez, who voted for the plan, called it a ``difficult moment, but it's a moment we cannot shrink from. The bill may not be perfect but the times will not wait for tomorrow.''

Many lawmakers voiced disdain for extra tax breaks the Senate added to the financial-rescue package. They ranged from a one-year fix to prevent the alternative-minimum tax from hitting more taxpayers to extending the research credit for business to allowing rural utilities to issue tax-exempt bonds for use of renewable energy.

The tax breaks added to the Senate bill would cost the Treasury an estimated $110 billion over 10 years, according to Congress' Joint Committee on Taxation.

``It's garbage, `` said Rep. Devin Nunes, R-Calif. ``They're trying to put more decorations on the Christmas tree, but the problem is the Christmas tree. ``

''The bailout legislation that the Senate is sending back to the House is a fraternal twin to the one I voted against on Monday -- meet the new bill, same as the old bill,'' said Rep. Joe Barton, R-Texas, who led efforts to kill the House bill. ``I'm kind of an old-fashioned guy, and I think we ought to pay for what we do as a government, but instead we're talking about adding $1.5 trillion to our national debt and forcing our children to pay the cost.''

PUBLIC ANGER

Sen. Jim DeMint, R-S.C., echoed many angry constituents.

``It forces innocent taxpayers to bail out government policies and Wall Street mistakes. It asks the American people to take a leap of faith and trust people who have consistently misled them, `` DeMint said. ``Our own government appears to be leading our country into the pit of socialism. ``

Join the discussion

Note: If this is your first time using our NEW commenting system, you will have to LOG OUT and then LOG BACK IN.

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Thank you for taking the time to offer your thoughts.

     Showing: Oldest first Newest first Most-recommended first Least-recommended first

@Nyx.AuthorDisplayName@ wrote on @Nyx.PostedAtTime@:

@Nyx.CommentBody@

@Nyx.Recommender@ @Nyx.AbuseReporter@