K
Kickin' Ass and Takin' Names
Guest
WASHINGTON -- Republicans managed Wednesday evening to block a
relatively expansive and expensive economic stimulus package
championed by Senate Democrats, who could not muster the 60 votes
needed to advance their plan to a final vote.
The Senate vote was 58 to 41 on a motion to curtail debate on the
package of tax rebates and business incentives, which would cost $204
billion over two years.
The program that stalled Wednesday evening was some $40 billion more
than a program approved overwhelmingly by the House a week ago after
President Bush, House Republicans and Speaker Nancy Pelosi reached
quick agreement.
What happens next is not immediately clear. Legislation can get
bottled up in the Senate, with its sometimes complicated procedural
rules. On the other hand, there is intense pressure for some kind of
stimulus package.
The majority leader, Senator Harry Reid of Nevada, had signaled that
Democrats were prepared to force a showdown with Republicans over the
$204 billion Senate stimulus package and would not bow to pressure to
simply make modest changes to a less expensive plan that was approved
by the House last week.
"We should go for the whole package," Mr. Reid said at a news
conference on Tuesday. He waved off assertions by some Republicans
that he was bluffing. "Wait until we have this vote, and they'll find
out," he said. "I am not much of a bluffer."
Mr. Reid apparently hoped to strong-arm the Republicans into adopting
the larger package favored by most Democrats and some moderate
Republicans, or to compel them to vote against important provisions,
perhaps hurting themselves in the fall elections.
To pressure Republicans from cold-weather states into voting for the
plan, he added $1 billion in home heating subsidies for low-income
families and enlisted the aid of various lobbying groups.
Just before the Senate vote, Senator Jon Kyl, Republican of Arizona,
said, "It would behoove us to reject what has been called a Christmas
tree."
Treasury Secretary Henry M. Paulson Jr. said earlier Wednesday that he
was bothered that special-interest groups were lining up for handouts
in an economic stimulus bill and urged senators to keep it focused on
simple tax rebates.
"I am increasingly concerned that in the Senate, the bazaar is open,
the special interests are coming to the trough, and that when I'm
reading about and hearing about things like tax rebates for coal
companies, the benefits for oil-well drilling and things like this,
I'm concerned that it's going to get bogged down," Mr. Paulson said.
Mr. Reid's approach reflected increasing confidence among Democrats
that worsening unemployment and fears of a recession made it safe to
push hard for their expanded package.
The House proposal, worked out in a deal with the White House, is a
more streamlined combination of tax rebates or payments for
individuals and families and tax incentives for businesses. But more
than 20 million Americans living on Social Security and more than
250,000 disabled veterans would not qualify under that plan.
"Why in the world would we want to leave that group behind?" Senator
Blanche Lincoln, Democrat of Arkansas, asked before the vote on
Wednesday.
The proposal favored by Senate Democrats would give payments to those
living on Social Security and the disabled veterans, but it contains
other provisions that many Republicans say are too costly and should
not be part of the stimulus plan, including an extension of
unemployment benefits and tax incentives for the coal industry.
Senator Mitch McConnell of Kentucky, the Republican leader, has
indicated he would like to adopt the House plan with two changes -- the
inclusion of those on Social Security and veterans, and a stipulation
that illegal immigrant workers could not receive payments. He said
Tuesday that he would still seek that.
Last week, Mr. Reid and other Democratic leaders had said they would
hold a vote on just such a proposal, making it a fallback option. But
on Monday he said he would allow votes only on the full Senate package
and the original House plan with no changes.
"They are going to vote on this package," he said. "The American
people are watching."
Democrats control the Senate 51 to 49, and Mr. Reid was careful to
schedule a vote on a day when the two Democratic senators running for
president could return to Washington.
Some Democrats had suggested that a tax incentive in the Senate
package, allowing businesses to deduct losses from up to five years
ago, rather than just two years in current law, would help the timber
industry and persuade Alaska's two Republican senators. But Senator
Ted Stevens of Alaska, the most senior Republican, said, "I have given
them no reason to think that."
Senator Bob Corker, Republican of Tennessee, said he would oppose both
plans because they would add to the deficit and do little for the
economy. "This is to win public favor in an election year," he said.
But some moderate Republicans supported the larger stimulus plan and
are clearly uncomfortable with the current fight.
"The Senate finance package is far more preferable," said Senator
Olympia J. Snowe, Republican of Maine, adding that it would help
people in her state. "You are out there on a daily basis struggling to
make ends meet, with skyrocketing energy prices, home heating oil,
gasoline, every dollar counts, and that's what this legislation is
about."
http://www.nytimes.com/2008/02/06/washington/07cnd-fiscal.html?_r=2&oref=slogin&oref=slogin
relatively expansive and expensive economic stimulus package
championed by Senate Democrats, who could not muster the 60 votes
needed to advance their plan to a final vote.
The Senate vote was 58 to 41 on a motion to curtail debate on the
package of tax rebates and business incentives, which would cost $204
billion over two years.
The program that stalled Wednesday evening was some $40 billion more
than a program approved overwhelmingly by the House a week ago after
President Bush, House Republicans and Speaker Nancy Pelosi reached
quick agreement.
What happens next is not immediately clear. Legislation can get
bottled up in the Senate, with its sometimes complicated procedural
rules. On the other hand, there is intense pressure for some kind of
stimulus package.
The majority leader, Senator Harry Reid of Nevada, had signaled that
Democrats were prepared to force a showdown with Republicans over the
$204 billion Senate stimulus package and would not bow to pressure to
simply make modest changes to a less expensive plan that was approved
by the House last week.
"We should go for the whole package," Mr. Reid said at a news
conference on Tuesday. He waved off assertions by some Republicans
that he was bluffing. "Wait until we have this vote, and they'll find
out," he said. "I am not much of a bluffer."
Mr. Reid apparently hoped to strong-arm the Republicans into adopting
the larger package favored by most Democrats and some moderate
Republicans, or to compel them to vote against important provisions,
perhaps hurting themselves in the fall elections.
To pressure Republicans from cold-weather states into voting for the
plan, he added $1 billion in home heating subsidies for low-income
families and enlisted the aid of various lobbying groups.
Just before the Senate vote, Senator Jon Kyl, Republican of Arizona,
said, "It would behoove us to reject what has been called a Christmas
tree."
Treasury Secretary Henry M. Paulson Jr. said earlier Wednesday that he
was bothered that special-interest groups were lining up for handouts
in an economic stimulus bill and urged senators to keep it focused on
simple tax rebates.
"I am increasingly concerned that in the Senate, the bazaar is open,
the special interests are coming to the trough, and that when I'm
reading about and hearing about things like tax rebates for coal
companies, the benefits for oil-well drilling and things like this,
I'm concerned that it's going to get bogged down," Mr. Paulson said.
Mr. Reid's approach reflected increasing confidence among Democrats
that worsening unemployment and fears of a recession made it safe to
push hard for their expanded package.
The House proposal, worked out in a deal with the White House, is a
more streamlined combination of tax rebates or payments for
individuals and families and tax incentives for businesses. But more
than 20 million Americans living on Social Security and more than
250,000 disabled veterans would not qualify under that plan.
"Why in the world would we want to leave that group behind?" Senator
Blanche Lincoln, Democrat of Arkansas, asked before the vote on
Wednesday.
The proposal favored by Senate Democrats would give payments to those
living on Social Security and the disabled veterans, but it contains
other provisions that many Republicans say are too costly and should
not be part of the stimulus plan, including an extension of
unemployment benefits and tax incentives for the coal industry.
Senator Mitch McConnell of Kentucky, the Republican leader, has
indicated he would like to adopt the House plan with two changes -- the
inclusion of those on Social Security and veterans, and a stipulation
that illegal immigrant workers could not receive payments. He said
Tuesday that he would still seek that.
Last week, Mr. Reid and other Democratic leaders had said they would
hold a vote on just such a proposal, making it a fallback option. But
on Monday he said he would allow votes only on the full Senate package
and the original House plan with no changes.
"They are going to vote on this package," he said. "The American
people are watching."
Democrats control the Senate 51 to 49, and Mr. Reid was careful to
schedule a vote on a day when the two Democratic senators running for
president could return to Washington.
Some Democrats had suggested that a tax incentive in the Senate
package, allowing businesses to deduct losses from up to five years
ago, rather than just two years in current law, would help the timber
industry and persuade Alaska's two Republican senators. But Senator
Ted Stevens of Alaska, the most senior Republican, said, "I have given
them no reason to think that."
Senator Bob Corker, Republican of Tennessee, said he would oppose both
plans because they would add to the deficit and do little for the
economy. "This is to win public favor in an election year," he said.
But some moderate Republicans supported the larger stimulus plan and
are clearly uncomfortable with the current fight.
"The Senate finance package is far more preferable," said Senator
Olympia J. Snowe, Republican of Maine, adding that it would help
people in her state. "You are out there on a daily basis struggling to
make ends meet, with skyrocketing energy prices, home heating oil,
gasoline, every dollar counts, and that's what this legislation is
about."
http://www.nytimes.com/2008/02/06/washington/07cnd-fiscal.html?_r=2&oref=slogin&oref=slogin
