Stimulus deal 42 percent tax cut and the rest spending

WASHINGTON Sat Feb 7, 2009 12:02am GMT

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WASHINGTON (Reuters) - Democratic and Republican senators are close to agreement on a $780 billion (528 billion pound) economic stimulus package that would include 42 percent tax cuts and 58 percent new government spending, Democratic Senator John Kerry said on Friday.

"It appears as if there's a deal," he told reporters. "Forty-two percent of this is tax cuts ... the differential is the spending. It's a good balance."

Democrats, who had proposed a $937 billion stimulus package, said they were moving towards agreement on the $780 billion figure after it was put forward by moderate lawmakers from both parties as a compromise on Friday.

(Editing by Anthony Boadle)