The Senate is considering a bipartisan housing bailout bill, loaded with tax breaks, that seems destined for easy passage. But it’s also guaranteed to meet stiff resistance in the House from fiscal hawks. The legislation aimed at helping ease the pain of the deflating housing market includes about $11 billion (over 10 years) in fiscal incentives. According to Congress Daily:

The Senate bill is heavily weighted toward tax breaks -- which are not offset with corresponding spending cuts -- that would cost approximately $11 billion over the next 10 years. The bill would allow property owners who do not itemize on returns to claim a deduction for their property taxes. That provision would cost $1.5 billion.

It also includes language that would allow businesses to write off recent losses incurred in 2008 and 2009 over a longer period of time so they could claim greater refunds. The change would extend the write-off from two years to four years, at a cost of $6 billion.

Senate Democrats originally wanted it to apply to five years as a special favor to the homebuilding industry, which has suffered massive losses in the downturn.

The measure would raise the cap on mortgage revenue bonds by $10 billion so housing finance agencies could refinance subprime loans, mortgages for first-time homebuyers and multifamily rental housing. The cost of that provision is $1.7 billion.

"I don’t see anyway that kind of package--not offset--passes the smell test in the House," a person following the issue closely for the housing industry told me. Early polling on the issue by Gallup released yesterday also reveals a mixed bag. The federal government taking steps to ensure people don’t lose their home is far from uncontroversial--56% of Americans say they support such a proposal, while 42% oppose. Not surprisingly, Democrats overwhelmingly support the idea, but 6 out of 10 Republicans oppose it, according to Gallup.

The dance of "Congress has to do something" in an election year bumping up against fiscal and philosophical constraints has begun.