Warlady
10-25-2001, 06:43 AM
WASHINGTON (AP) - The $100 billion economic stimulus package passed by the House is likely to undergo significant change in the Democratic-led Senate, where far greater support exists for additional spending and far less for cuts in business taxes.
More aid for the unemployed, including federal help with laid-off workers' health insurance premiums, and up to $20 billion in spending on homeland security and infrastructure items are among proposals gaining ground in the Senate.
The House bill, passed Wednesday by a wafer-thin 216-214 vote, comprises almost entirely tax cuts. President Bush (news - web sites) says he is willing to negotiate with Democrats but does not want a stimulus plan composed mostly of new spending.
And he wants the package quickly.
``We need a stimulus, and we need it now,'' Treasury Secretary Paul O'Neill said.
Nevertheless, the Senate is extremely unlikely to take up its version of a stimulus package before next week at the earliest. The majority leader, Sen. Tom Daschle, D-S.D., has said he expects to have a bill to the president by Thanksgiving.
Bush praised four main elements in the House bill, which costs $99.5 billion in 2002 and $159 billion over 10 years. They include a new round of tax rebates for people who didn't get a check earlier this year; repeal of the corporate alternative minimum tax; enhanced expensing write-offs for business capital assets; and acceleration of the cut in the 27 percent individual income tax rate so it falls to 25 percent in 2002, four years earlier than under current law.
The trick to coming up with an acceptable formula will be to find middle ground, said Sen. John Breaux (news - bio - voting record), a Louisiana Democrat who co-chairs a pivotal band of Senate moderates. Breaux said Republicans will oppose broad new entitlement spending, and Democrats don't favor the House tilt toward corporate tax cuts.
``Unless we have a bipartisan package, we won't be able to get a bill out of the Senate,'' Breaux said.
The close House vote, largely along party lines, came after hours of noisy debate reflecting the deep political divide on economic policy. It was a departure from the congressional unity on other matters since the Sept. 11 terror attacks. Seven Republicans voted against the bill; three Democrats voted for it.
``It officially shatters the myth of bipartisanship,'' said Rep. Charles Rangel (news - bio - voting record), D-N.Y.
Undeterred, Republicans said the legislation was the ideal way to encourage renewed business investment, stop job layoffs and boost consumer confidence in time for the holiday shopping season.
``Investment is the driving engine in the economy,'' said House Majority Leader Dick Armey, R-Texas. ``This bill provides a reward for the risk-takers who create jobs in America.''
Democrats sharply disagreed, accusing Republicans of assembling a package that favors the wealthy and big corporations over laid-off workers and threatens to trigger deep future budget deficits. Senate Democrats are certain to make major changes, most likely to give greater aid to the unemployed and fewer business tax cuts.
``The workers who have lost their jobs get bread crumbs from this bill,'' said House Minority Leader Dick Gephardt, D-Mo.
Cliick to read the rest (http://dailynews.yahoo.com/h/ap/20011025/ts/attacks_economy_10.html)
More aid for the unemployed, including federal help with laid-off workers' health insurance premiums, and up to $20 billion in spending on homeland security and infrastructure items are among proposals gaining ground in the Senate.
The House bill, passed Wednesday by a wafer-thin 216-214 vote, comprises almost entirely tax cuts. President Bush (news - web sites) says he is willing to negotiate with Democrats but does not want a stimulus plan composed mostly of new spending.
And he wants the package quickly.
``We need a stimulus, and we need it now,'' Treasury Secretary Paul O'Neill said.
Nevertheless, the Senate is extremely unlikely to take up its version of a stimulus package before next week at the earliest. The majority leader, Sen. Tom Daschle, D-S.D., has said he expects to have a bill to the president by Thanksgiving.
Bush praised four main elements in the House bill, which costs $99.5 billion in 2002 and $159 billion over 10 years. They include a new round of tax rebates for people who didn't get a check earlier this year; repeal of the corporate alternative minimum tax; enhanced expensing write-offs for business capital assets; and acceleration of the cut in the 27 percent individual income tax rate so it falls to 25 percent in 2002, four years earlier than under current law.
The trick to coming up with an acceptable formula will be to find middle ground, said Sen. John Breaux (news - bio - voting record), a Louisiana Democrat who co-chairs a pivotal band of Senate moderates. Breaux said Republicans will oppose broad new entitlement spending, and Democrats don't favor the House tilt toward corporate tax cuts.
``Unless we have a bipartisan package, we won't be able to get a bill out of the Senate,'' Breaux said.
The close House vote, largely along party lines, came after hours of noisy debate reflecting the deep political divide on economic policy. It was a departure from the congressional unity on other matters since the Sept. 11 terror attacks. Seven Republicans voted against the bill; three Democrats voted for it.
``It officially shatters the myth of bipartisanship,'' said Rep. Charles Rangel (news - bio - voting record), D-N.Y.
Undeterred, Republicans said the legislation was the ideal way to encourage renewed business investment, stop job layoffs and boost consumer confidence in time for the holiday shopping season.
``Investment is the driving engine in the economy,'' said House Majority Leader Dick Armey, R-Texas. ``This bill provides a reward for the risk-takers who create jobs in America.''
Democrats sharply disagreed, accusing Republicans of assembling a package that favors the wealthy and big corporations over laid-off workers and threatens to trigger deep future budget deficits. Senate Democrats are certain to make major changes, most likely to give greater aid to the unemployed and fewer business tax cuts.
``The workers who have lost their jobs get bread crumbs from this bill,'' said House Minority Leader Dick Gephardt, D-Mo.
Cliick to read the rest (http://dailynews.yahoo.com/h/ap/20011025/ts/attacks_economy_10.html)