Democratic and Republican congressional leaders reached a tentative deal this morning on a national economic stimulus plan, according to various media reports.
According to those reports, the plan includes tax rebates of $300 to $1,200 per household and business tax cuts to jolt the slumping U.S. economy.
The Bush administration has also been pushing for an economic stimulus package as many economists fear the U.S. economy may be heading into a recession. Bush has supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Bush's initial proposal.
Under the tentative congressional plan, families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200. Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less.
Workers would have to have earned at least $3,000 in 2007 to receive the rebates, according to the reports.
Another element of the plan is a package of tax breaks for businesses that could cost $70 billion. The tax breaks would give businesses incentives to invest in plants and equipment, give small businesses more generous expensing rules and allow businesses suffering losses now to reclaim taxes previously paid.
To address the mortgage crisis, the congressional stimulus plan also allows Fannie Mae and Freddie Mac - government-sponsored companies that are the two biggest U.S. financers and guarantors of home loans - to buy home mortgages much larger than the current $417,000 limit.

In his State of the State Address last night, Gov. Jim Doyle unveiled his plans to grow Wisconsin’s economy.
Doyle said the state faces challenges, including revenue shortfalls, and must cut state spending, work to boost state businesses and reform health care.
His plan includes a $100 million annual subsidy to reduce health care costs.
Doyle’s plans also include tax credits to help high-tech firms and manufacturers, incentives for renewable energy and an increase in the minimum wage to $7.25 an hour.
“America’s economy is in deep turmoil and this will be a year of great challenge for us,” Governor Doyle said. “Our changing world brings serious economic challenges along with new opportunity to grow this state. Not only must we seize this opportunity, Wisconsin can lead the way. Global markets will go up and down, but it has never been more important to invest in long term economic growth for Wisconsin.”
However, Doyle must convince the Legislature to support his proposals. Early indications are he may receive more support for some of his proposals, especially spending cuts and tax credits for businesses, from Republicans who control the state Assembly than members of his own Democratic party that control the state Senate.
State Rep. Leah Vukmir, R-Wauwatosa, who spoke at the Northern Trust Economic Trends program this morning, presented by Small Business Times and attended by more than 500 business executives at the Italian Community Center, expressed support for some of Doyle’s initiatives.
“I was actually happy with much of what Governor Doyle had to say last night,” Vukmir said. “He acknowledged we will need to work together to address state spending. If we do have a recession we will have to make significant cuts in spending.”
Vukmir said she would like to see even more tax cuts than Doyle is proposing.
“We must focus on broad tax relief that protects jobs,” she said.
Doyle’s Grow Wisconsin also received favorable reviews from Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce (MMAC).
“Grow Wisconsin wisely deploys the state’s resources to support the kind of industries and entrepreneurial activity that have a multiplier effect throughout our economy,” said Sheehy. “We appreciate Governor Doyle moving these items off business’ wish list and onto the legislature’s work list. I hope that lawmakers of both parties respond quickly and positively to these important proposals.”

Marshall Erdman and Associates (Erdman), a Madison-based firm that plans, designs and builds health care facilities, has been acquired by Cogdell Spencer Inc., a Charlotte, N.C., real estate investment trust (REIT).
The transaction is valued at $247 million and is expected to close in late February. Erdman will operate as a subsidiary of Cogdell Spener. The combined company will operate nationwide with offices in Atlanta, Charlotte, Charleston, S.C., Columbia, S.C., Dallas, Denver, Madison, Seattle and Washington, D.C. Madison will remain the headquarters for Erdman. Charlotte will remain the corporate headquarters for Cogdell Spencer Inc.
Baird Capital Partners, Lubar & Co. and Erdman senior management acquired the firm in 2004. Under the sale to Cogdell Spencer, Baird Lubar & Co. and management received an $85 million equity rollover.

Plymouth-based NSP Inc. has purchased Plymouth-based Diverse Tooling, a tool and die company.
The transaction was handled by Troy Beauchamp of Cornerstone Business Services Milwaukee office.
NSP Inc. is owned by Jeff and Cindy Goebel. The Goebels plan to keep Diverse Tooling in the current facility.
“Diverse Tooling is well known in the metal stamping, plastic extrusion, and tool and die industries for its problem solving capabilities and prompt service,” said a news release announcing the deal.  “NSP Inc looks forward to continuing the level of quality and services that Diverse Tooling customers have become accustomed.

Milwaukee-based Northwestern Mutual Life Insurance Co. today announced its financial results for 2007, including a record $5 billion in dividends approved for payment to participating policyowners in 2008. The company said it again expects to pay the largest amount of participating insurance dividends in the U.S. life insurance industry.
The company reported $1 billion in net income in 2007, up from $829 million in 2006 and total revenue of $21.35 billion in 2007, up from $19.73 billion in 2006.The company also reported premium revenue of $13.2 billion in 2007, an increase of 9 percent from 2006.
"The year 2007 was a very good year in our company's history," said Edward J. Zore, President and CEO of Northwestern Mutual. "We celebrated our 150th anniversary, surpassed $1 trillion of life insurance in-force, and set a company record for paying dividends to policyowners. By all accounts, it was an outstanding year for delivering financial security to our policyowners and clients."

Brown Deer-based Metavante Technologies Inc., which was spun off last year by Milwaukee-based Marshall & Ilsley Corp., reported today a net loss of $92.8 million, or 78 cents a share in the fourth quarter.
The company’s losses for the quarter included impairment charges of $129.5 million, transaction-related costs of $24.7 million and interest expense of $21.2 million. Excluding those charges, which are mostly related to goodwill adjustments and costs associated with separating from Marshall & Ilsley, Metavante earned $44.1 million for the quarter.
Metavante reported revenue of $408.2 million for the quarter, a 6 percent increase from the year-ago period.
For the full year, Metavante earned $49.5 million, or 41 cents per share, on $1.6 billion in revenue. Metavante earned $160.1 million during 2006 on $1.5 billion in revenue.
In its announcement today, Metavante said it was "cautiously optimistic" about 2008, given the risks of tighter spending at bank clients and fewer consumer payment transactions, and forecast cash earnings of $1.33 to $1.37 a share. The company expects organic revenue growth of 4 percent to 6 percent, and earnings of $1.12 to $1.16 a share for the year.

Major League Baseball commissioner Bud Selig, and Manpower Inc. chief executive officer Jeff Joerres, will be honored with the Woodrow Wilson Awards.
The Woodrow Wilson International Center for Scholars along with dinner co-chairs, Sheldon Lubar, founder and chairman of Lubar & Co, Milwaukee, and Edward Zore, president and CEO of Northwestern Mutual Life Insurance Company, Milwaukee will present awards to Bud Selig and Jeff Joerres at 6:30 pm on May 13 at the Pfister Hotel, Milwaukee.  
Selig has been the commissioner of major league baseball since 1998. He will be presented with the Woodrow Wilson Award for Public Service. This award is given to individuals who have served with distinction in public life and share former President Woodrow Wilson’s belief in public discourse, and scholarship.
Joerres will be presented the Woodrow Wilson Award for Corporate Citizenship. The award is given to executives who, through examples, and business practices, have shown a concern for the common good. In addition to his work leading Milwaukee-based Manpower, Joerres has also provided support for the YMCA of Metropolitan Milwaukee, United Way of Greater Milwaukee and Junior Achievement of Wisconsin.

Between 2001 and 2007, U.S. Rep. Jim Sensenbrenner, R-Wisconsin, and the Republican leadership abandoned traditional conservative values by embracing both tax cuts and massive government spending according to James Burkee, an associate professor of history at Concordia University Wisconsin who is running against Sensenbrenner in the Republican primary, and the author of today's Milwaukee Biz Blog.

The Peachtree Cos., owner of SNE Enterprises in Mosinee, will temporarily lay off 300 employees, a company official said this morning. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com.

The BizTimes Stock Index improved 3.22 points to close at 142.88 Wednesday and local stocks joined the broader market’s advances this morning as advancers outnumbers decliners. The largest local advancers this morning were Bucyrus International Inc. (up $3.01 to $78.53), Twin Disc Inc. (up $1.56 to $17.47) and Joy Global Inc. (up $1.51 to $54.22). The largest local decliners this morning were A.O. Smith Corp. (down $1.85 to $32.64) and Rockwell Automation Inc. (down $1.47 to $55.11). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.

Cambridge Major Laboratories Inc., a Germantown-based manufacturer and developer of pharmaceutical ingredients, is planning to build a new 120,000-square-foot facility near its existing headquarters.
The new facility will be next door to Cambridge's 50,000-square-foot facility at W130 N10497 Washington Dr., said Michael Major, president and chief executive officer of the company. The company plans to break ground on the new building, which will have manufacturing, support and warehousing operations, within two months.
"We are in the final stages of EPA approval," Major said.
Cambridge will also build a new "tank farm" to store chemicals and by-products, and a thermal oxidizer to burn off any gases coming from its chemical reactors.
The project will cost more than $30 million, Major said.
Cambridge has about 85 employees at its Germantown facility, which is at maximum output. The company will add 45 to 50 new employees once the new facility is completed in 2010, Major said.
Demand for Cambridge's chemicals is increasing, Major said. The company has several projects that will be released to the commercial market soon, some of which have been in clinical trials for several years.
"We have a few projects that are coming to the commercial stage, they're close to approval," Major said. "They (will) require thousands of metric tons (of chemicals). It leads us to the point that we need to buy something or we need to build something. We have the land and the expertise (in Germantown)."
Cambridge will retain its existing facility on Washington Drive once the new building is complete for research and development work. The new plant will manufacture large batches of chemicals, Major said.
"The whole philosophy is to have stronger R&D," he said. "We have around 250 projects, and about 80 of those are in the very early stages in terms of revenue."