Feb. 6 (Bloomberg) -- The U.S. Senate refused to consider a Democratic-backed $156 billion economic stimulus bill that would expand a House measure by giving tax rebates to more people and extending unemployment benefits.

The Senate's 58-41 vote was two short of the 60 needed to overcome Republican objections and consider the measure further. Republicans said the legislation passed by the Democratic- controlled Senate Finance Committee last week added too many provisions and would delay getting money into the hands of consumers.

``The president has made it clear that he doesn't want that extension of unemployment benefits,'' Republican Senator John Thune said.

Republicans said they want to amend the House version to give the tax rebates to senior citizens and disabled veterans who were initially left out, without adding the jobless aid or home heating aid for the poor that was in the Finance Committee bill.

Senate Majority Leader Harry Reid will try a second time to get enough Republican votes to pass the bill, his spokesman Jim Manley said. Reid, who changed his vote at the last minute in a procedural move to retain control of the bill, needs to win the support of one additional Republican senator to get the bill through.

``He's working hard to pick up one or two more votes,'' Manley said. He didn't say when Reid might try for another vote.

McCain Missed Vote

Reid has threatened to force lawmakers to vote on the House-passed stimulus bill without allowing amendments to give rebates to senior citizens dependent on Social Security or to disabled veterans.

Senator John McCain, an Arizona Republican who is running for president, was the only senator to miss today's vote. Manley declined to say if Reid is trying to win McCain's support.

Both the House and Senate bills would provide tax-rebate checks for millions of households, which lawmakers say will inject cash into the slowing economy. They also would establish tax incentives for businesses to invest in new equipment and increase the size of mortgage loans that Fannie Mae and Freddie Mac can buy to add capital to the housing market.

The Senate measure would provide $500 rebates to individuals earning as much as $150,000 a year and $1,000 to couples making as much as $300,000. The House measure would phase out rebates for individuals earning more than $75,000 and couples earning more than $150,000.

Unemployment Benefits

The Senate plan also extends unemployment insurance benefits for an extra 13 weeks for all workers and adds yet another 13 weeks for those who live in states with jobless rates over 6 percent. It allows businesses to get tax refunds for net operating losses going back five years rather than the two years allowed in the current law.

In addition, the Senate added tax credits for alternative energy investment, a payment to coal companies, more money for home energy assistance and increased the amount of government- backed, tax-free mortgage bonds, expanding their use for mortgage refinancing and first time homebuyers to inject capital into the housing market.

Senate Republicans sought to ensure that senior citizens and disabled veterans got tax rebates without letting Democrats add the unemployment and energy provisions.

`Christmas Tree'

Senate Republican Leader Mitch McConnell of Kentucky said the Democratic stimulus bill passed by the Senate Finance Committee was ``a Christmas tree of legislative goodies'' that President George W. Bush might not sign. The alternative proposal passed by the House last week could be approved quickly and would be signed, he said.

``My preference is to modify the House package to include rebate checks for seniors and disabled veterans,'' McConnell said in a statement today.

Interest groups from AARP, which represents senior citizens, and the National Association of Homebuilders, are among the groups lobbying senators to retain the proposals that will help their members.

``We're having our members come in and meet with senators and principal staff people, and we're organizing a massive grassroots telephone campaign,'' said NAHB Chief Executive Officer Jerry Howard. He said his members prefer the Senate bill.

Hoyer Comments

The measure that the House passed last week would send tax- rebate checks of $600 to $1,200 to about 111 million Americans who show at least $3,000 in earned income or who pay income tax. The Senate bill includes Social Security and disability payments as income, which would qualify millions of Social Security recipients for rebates who would be excluded under the House plan.

House Majority Leader Steny Hoyer of Maryland said he supports some of the Senate additions to the plan, but doesn't want to end up in a veto fight with the president on a bill that all sides agree needs to pass quickly.

``Obviously there's some that we're supportive of, but we'll see what the president wants to do,'' Hoyer said today. ``Having a veto fight with the president I don't think enhances the confidence of the American public and our ability to get things done.''

To contact the reporter on this story: Alison Fitzgerald in Washington at Afitzgerald2@Bloomberg.net

Last Updated: February 6, 2008 20:01 EST