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Showing posts with label rep. john boehner. Show all posts
Showing posts with label rep. john boehner. Show all posts

House OKs $819B stimulus bill with GOP opposition

Posted by Posted by Linda on Thursday, January 29, 2009 , under , , , , | comments (0)



WASHINGTON – In a swift victory for President Barack Obama, the Democratic-controlled House approved a historically huge $819 billion stimulus bill Wednesday night with spending increases and tax cuts at the heart of the young administration's plan to revive a badly ailing economy. The vote was 244-188, with Republicans unanimous in opposition despite Obama's frequent pleas for bipartisan support.

President Barack Obama is pictured alongside House Speaker Nancy Pelosi and President Barack Obama is pictured alongside House Speaker Nancy Pelosi and House Minority Leader John

"This recovery plan will save or create more than three million new jobs over the next few years," the president said in a written statement released moments after the House voted. Still later, he welcomed congressional leaders of both parties to the White House for drinks as he continued to lobby for the legislation.

Earlier, Obama declared, "We don't have a moment to spare" as congressional allies hastened to do his bidding in the face of the worst economic crisis since the Great Depression.

The vote sent the bill to the Senate, where debate could begin as early as Monday on a companion measure already taking shape. Democratic leaders have pledged to have legislation ready for Obama's signature by mid-February.

A mere eight days after Inauguration Day, Speaker Nancy Pelosi said the events heralded a new era. "The ship of state is difficult to turn," said the California Democrat. "But that is what we must do. That is what President Obama called us to do in his inaugural address."

With unemployment at its highest level in a quarter-century, the banking industry wobbling despite the infusion of staggering sums of bailout money and states struggling with budget crises, Democrats said the legislation was desperately needed.

"Another week that we delay is another 100,000 or more people unemployed. I don't think we want that on our consciences," said Rep. David Obey, D-Wis., chairman of the House Appropriations Committee and one of the leading architects of the legislation.

Republicans said the bill was short on tax cuts and contained too much spending, much of it wasteful, and would fall far short of administration's predictions of job creation.

The party's leader, Rep. John Boehner of Ohio, said the measure "won't create many jobs, but it will create plenty of programs and projects through slow-moving government spending." A GOP alternative, comprised almost entirely of tax cuts, was defeated, 266-170.

On the final vote, the legislation drew the support of all but 11 Democrats, while all Republicans opposed it.

The White House-backed legislation includes an estimated $544 billion in federal spending and $275 billion in tax cuts for individuals and businesses. The totals remained in flux nearly until the final vote, due to official re-estimates and a last-minute addition of $3 billion for mass transit.

Included is money for traditional job-creating programs such as highway construction and mass transit projects. But the measure tickets far more for unemployment benefits, health care and food stamp increases designed to aid victims of the worst economic downturn since the Great Depression of the 1930s.

Tens of billions of additional dollars would go to the states, which confront the prospect of deep budget cuts of their own. That money marks an attempt to ease the recession's impact on schools and law enforcement. With funding for housing weatherization and other provisions, the bill also makes a down payment on Obama's campaign promise of creating jobs that can reduce the nation's dependence on foreign oil.

The centerpiece tax cut calls for a $500 break for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes.

The House vote marked merely the first of several major milestones a for the legislation, which Democratic leaders have pledged to deliver to the White House for Obama's signature by mid-February.

Already a more bipartisan — and costlier — measure is taking shape in the Senate, and Obama personally pledged to House and Senate Republicans in closed-door meetings on Tuesday that he is ready to accept modifications as the legislation advances.

Rahm Emanuel, a former Illinois congressman who is Obama's chief of staff, invited nearly a dozen House Republicans to the White House late Tuesday for what one participant said was a soft sales job.

This lawmaker quoted Emanuel as telling the group that polling shows roughly 80 percent support for the legislation, and that Republicans oppose it at their political peril. The lawmaker spoke on condition of anonymity, saying there was no agreement to speak publicly about the session.

In fact, though, many Republicans in the House are virtually immune from Democratic challenges because of the makeup of their districts, and have more to fear from GOP primary challenges in 2010. As a result, they have relatively little political incentive to break with conservative orthodoxy and support hundreds of billions in new federal spending.

Also, some Republican lawmakers have said in recent days they know they will have a second chance to support a bill when the final House-Senate compromise emerges in a few weeks.

Rep. Randy Neugebauer, R-Texas, sought to strip out all the spending from the legislation before final passage, arguing that the entire cost of the bill would merely add to soaring federal deficits. "Where are we going to get the money," he asked, but his attempt failed overwhelmingly, 302-134.

Obey had a ready retort. "They don't look like Herbert Hoover, I guess, but there are an awful lot of people in this chamber who think like Herbert Hoover," he said, referring to the president whose term is forever linked in history with the Great Depression.

House Dems push tax breaks through committee




WASHINGTON – Amid grim new evidence of economic weakness, legislation at the heart of President Barack Obama's recovery plan advanced in Congress Thursday over the persistent opposition of Republicans seeking deeper tax cuts.

President Barack Obama, tours the Brady press briefing room at the White House, President Barack Obama, tours the Brady press briefing room at the White House, Thursday, Jan. 22, 2009

"We are very pleased with the progress," said Speaker Nancy Pelosi, D-Calif., after $275 billion in tax cuts cleared the House Ways and Means Committee on a party-line vote of 24-13. Democratic leaders have promised the measure will be ready for Obama's signature by mid-February.

"It will create jobs immediately, and it will also lay the foundation for economic stability as we go forward," Pelosi added.

But Republicans said there was no reliable estimate of the bill's impact on employment.

"The American people deserve to know what they are getting for their nearly $1 trillion," said Rep. Dave Camp of Michigan, the top Republican on the tax-writing committee.

In all, the measure costs $825 billion, a total expected to grow as it makes its way through Congress.

On the key vote of the day, Democrats closed ranks to preserve a tax break for this year and 2010 that would mean $500 for many workers and $1,000 for millions of couples, including those whose earnings are so low that they pay no federal income tax.

Democrats also turned back a Republican attempt to jettison a new federal subsidy to help laid-off workers pay for health insurance after they lose employer-paid coverage, and to waive income taxes on unemployment benefits for two years.

They argued that the GOP proposals would favor upper-income individuals and couples who, they said, benefited disproportionately from tax cuts passed during the administration of former President George W. Bush.

"We need to be dealing with people at the bottom of the income scale," said Rep. Jim McDermott, D-Wash. He also noted that the legislation would provide a $25-per-week increase in unemployment benefits.

But Camp cited a report by the nonpartisan Congressional Research Service that he said showed lower- and middle-income workers already would have received most of the benefits from the proposal to eliminate the tax on unemployment benefits.

Separately, the House Energy and Commerce Committee approved a $2.8 billion program that would expand broadband service into underserved areas. It also approved various programs costing an estimated $27 billion to promote energy efficiency.

The panel, working late into the night, also passed a $20 billion effort to speed the creation of electronic health records, and it approved more money to help states afford increased enrollment under Medicaid, the health care program for the low income. In all, the additional spending for health care programs totals about $150 billion over five years.

During a recession, enrollment traditionally rises in programs such as Medicaid, food stamps and unemployment insurance as workers lose their jobs and their incomes.

Congressional committees did their work as government reports showed the number of newly laid-off Americans filing jobless claims and the pace of home construction both posted worse-than-expected results. Additionally, Microsoft Corp. said it would slash up to 5,000 jobs over the next 18 months, while chemical maker Huntsman Corp. said it would cut more than 1,600 employees and contractors combined.

Democrats have an oversized majority on the tax-writing committee, as they do on all committees, the result of election gains in the fall. While Republicans sought several changes in the legislation, the proceedings were devoid of drama or even emotion.

Republicans in both the House and Senate are developing alternatives to the Democratic legislation, and Rep. John Boehner of Ohio, the GOP House leader, announced a meeting next week with Obama.

"Our plan offers fast-acting tax relief, not slow-moving and wasteful government spending," he said, referring to a study by the Congressional Budget Office questioning administration claims the money could be spent fast enough to reduce joblessness quickly.

The administration countered with a promise that 75 percent of the entire measure would reach the economy over the next year and a half, according to a letter sent by White House Budget Director Peter Orszag to top lawmakers.

Not all Democrats were completely pleased with the legislation making its way to a vote on the House floor next week.

The portion of the measure ticketed for highway and bridge construction, $30 billion, is far less than some favor, and there was grumbling.

"This bill ... is not even near what we need for short-term needs and it does not in any meaningful way address the long-term needs for our country," said Rep. Peter DeFazio, D-Ore., although he added, "It is better than nothing."

There was outright opposition in the House to another element of Obama's economic recovery program, but it was entirely symbolic.

On a vote of 270-155, lawmakers voted to block use of the remaining $350 billion in the financial industry bailout created last fall. Among the opponents were 99 Democrats.

The Senate cleared the way for Obama to use the money last week, so the House vote was little more than a chance for individual lawmakers to vent their opposition. Some Democrats took advantage of the opportunity. "There's a massive transfer of wealth going on, taking money out of the pockets of the American people and putting it into these banks. This has to stop. We have to stop," said Rep. Dennis Kucinich, D-Ohio.

The tax cuts that won committee approval included a $500 credit for workers making up to $75,000 per year. Couples with incomes up to $150,000 a year would receive a $1,000 credit. Individuals with incomes up to $100,000 and couples earning up to $200,000 would qualify for lesser tax breaks.

The Republican alternative envisioned a different approach.

It called for reducing the current 10 percent bracket to 5 percent, affecting a taxpayer's first $8,350 in income, and lowering the existing 15 percent bracket to 10 percent, covering income from $8,351 to $33,950.

The legislation that cleared committee also would provide a temporary $2,500 tax credit to help pay for college, and includes breaks to encourage the production of renewable energy resources.

For businesses, the measure includes $29 billion in tax cuts to encourage investment in new plants and equipment, and to permit money-losing firms to claim refunds on taxes paid up to five years ago, during profitable times.