Arm Twisting, Add-Ons Aid Bailout's Appeal

Lobbyists, Lawmakers In Favor Of Economic Rescue Plan Chip Away At Opposition

(CBS/ AP)  Bit by bit, lawmaker by lawmaker, forces in favor of the massive financial rescue plan rejected just days ago are turning around the tide of opinion in Congress.

They're using goodies, phone calls, old-fashioned arm twisting. They bring a keen knowledge of what needs to be added to the package to entice a particular congressman to flip, whether it has much to do with Wall Street or not.

Mental health parity in big insurance plans?

Sure, if that's what it takes.

"This is sausage-making, of course," said Jade West, lobbyist for the National Association of Wholesaler-Distributors. Toward, in her opinion, a tasty end product.

But also an even more expensive one. Add about $120 billion over five years in sweeteners the Senate is attaching to the $700 billion price tag of the bailout plan that the House voted down Monday.

Senators added the new items in a 74-25 vote late Wednesday, sending the rewritten package back to the House for a showdown vote expected Friday. House leaders planned to spend Thursday pressing rank-and-file members for the dozen converts they need.

The bailout package was never in danger in the Senate. Senators instead played catalysts for the House, adding tax provisions popular with the left and right in a bid that House leaders hope - but cannot guarantee - will persuade enough of the House rank-and-file to switch from "nay" to "aye" on a highly contentious bill a month before Election Day.

The "no" voters of Monday are under tremendous pressure to just say "yes" now. The combined leadership of both parties in Congress is united behind the plan, President George W. Bush is making calls, interest groups are pressing in and careful track is being kept of everyone's political pulse.

"Leaning yes - NEEDS MORE CALLS," a trade association list says of one Tennessee Republican, Zach Wamp. Of another, Marsha Blackburn, the list says: "(Undecided), but positive. Sales tax impt."

That's a reference to a provision added by the Senate that would allow taxpayers to deduct state and local sales taxes, an enormously popular idea in Tennessee, Texas, Florida and a few other states. "This is moving in the right direction," Blackburn said.

And there's more, much more.

For Western GOP lawmakers, there's help for rural counties, a huge issue for lawmakers like Doc Hastings, R-Wash. And Republicans are excited about new accounting rules to ease bank liquidity and plans to boost deposit insurance coverage.

The assorted add-ons, mostly tax measures, include energy-related provisions, business tax breaks, a one-year fix of the alternative minimum tax and tax relief for victims of recent disasters.

Meanwhile, the phone calls from constituents, overwhelmingly against the bailout before, are more evenly divided. People who saw the bailout as strictly a Wall Street sweetheart deal have a more nuanced view now that they have seen their retirement and other investment accounts tank after the House defeated the bill.

"Pain is always a good way to focus people," said R. Bruce Josten, executive vice president for government affairs at the U.S. Chamber of Commerce.

The whole idea is still a mud sandwich for many lawmakers. But some are preparing for a politically painful switch.

For Steve LaTourette, the boost in Federal Deposit Insurance Corp. limits from $100,000 to $250,000 and the move by the Securities and Exchange Commission easing accounting rules for banks has the Ohio Republican leaning toward switching to "yes," even as calls to his office were at one point running 200-1 against. He's also close friends with GOP leader John Boehner, for whom passage of the bill is a key leadership test.

"To have to say 'no' to Boehner was really hard," said LaTourette. "To say 'no' on the bill was not so hard. It was bad politics and bad policy."

But he added, "If we hadn't defeated it the other day, we wouldn't have the FDIC stuff," nor the change in accounting rules. "So I think this bill is improving."

Rep. Henry Cuellar, D-Texas, fielded a call from Bush urging him to switch. Cuellar says the extension of tax breaks for businesses and individuals, and allowing people to deduct sales tax payments, has him "seriously considering" voting for it.

"We're looking at more of a broader-based economic recovery plan instead of just paying for the sins of those five companies on Wall Street," Cuellar said.

Texas Democrat Gene Green, however, isn't sold yet. He wants changes to the bankruptcy code to allow judges to restructure the terms of a home loan in bankruptcy proceedings. No way, say Republicans and the White House.

Green supports the deductibility of sales taxes, but "does that still overcome investing more than we spent on the Iraq war without really getting to the problem of people being evicted from their homes?"

The upshot? "They don't have me yet," Green said.

Others won't be moved. For them, the issue is still the unprecedented bailout of Wall Street.

"The bill that they are going to send back is the same bill that I voted against two days ago," Rep. Joe Barton, R-Texas, said on Bloomberg Television. "Why would I turn around and vote for it tomorrow evening or Friday?"

Rep. John Shadegg, R-Ariz., is now counted as a "yes," after remarks on local radio praising the new deposit insurance and accounting rules.

"I'd be inclined to vote for the bill, assuming there have not been any bad things added to it," Shadegg said on KTAR, a Phoenix radio station.

Working off a color-coded spreadsheet listing House members whose "no" votes sank the bill in that chamber on Monday, business groups contacted dozens of lawmakers - at home and in Washington - to seek their support. By late afternoon, that list showed five legislators who'd voted "no" now leaning toward supporting an overhauled version of the bill the House rejected by 23 votes.

Efforts by the National Restaurant Association were typical of how many trade groups were working to round up votes.

Besides contacting lawmakers directly in Washington, the organization asked its 50 state chapters and its 18,000 most active members around the country to contact their members of Congress directly.

Among the extended tax cuts added to the bailout bill is one allowing those who build new restaurants or improve existing ones to write off the cost faster than the current 39.5 years.

The Solar Energy Industries Association also stepped into the fray, focusing on about 70 House members who voted "no" from places where solar energy manufacturers or solar energy users are important. That includes California, New Jersey, New York, Arizona and Ohio, said Rhone Resch, the group's president.

[frankzipp2u]

Did you email your representitives? They did this anyway, while they Spat in our faces. A Yea Vote is a Lost Vote and a Nay Vote is Promised Vote! Support those who stood up to this mess. I fear the "Bushville Horror" flick will be a record seller, when it is made. What is next all of congress is going to go into hiding in Jan?

[frankzipp2u]

Did you email your representitives? They did this anyway, while they Spat in our faces. A Yea Vote is a Lost Vote and a Nay Vote is Promised Vote! Support those who stood up to this mess. I fear the "Bushville Horror" flick will be a record seller, when it is made. What is next all of congress is going to go into hiding in Jan?

[homespunlady]

So, anyone going to watch the FINAL 700 BILLION to 5 TRILLION GIFT AWARD from our very own "Peter and the Wolf" King George to HIS CRONIES before they all sail off into the NON-EXTRADITABLE countries with our GRANDKIDS future standard of living in their BACK POCKETS?

Better get crackin'' for the REST of the PRIVATEERING Cronies that stayed to MOP UP the LAST FEW CRUMBS from the American People - "vacation property" in Paraguay and Bahrain is GOING FAST!!

And for Halloween THIS YEAR the PIRATES of WALL STREET are dressing up as HELPLESS "WENCHES" so you too can "contribute" to their "rescue"!!!

[praiseallah1]

Bill O''Reilly freaks out at Congressman Barney Frank over his role in the Fannie/Freddie scandal which caused our current economic crisis! It''s HILLARIOUS!

Go watch these videos documenting the fraud of our elected officials http://wallstreetmarketnews.blogspot.com

[hjedtyj]

Bush/Cheney called 800 Battalions to harass Remaining House Members to Vote for Bailout Tomorrow!!

Just heard this - hot off the press at 9:30pm, Thursday night!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Will Bush/Cheney start WW III over this? We know they have been itching to start a war to counter/cancel November''s elections so they can stay in power for the past year. Is this it?

The House members whom voted against are those who represent poor and low income areas throughout the country and areas that do not benefit from bailout. They are enough in numbers to make a difference in Monday''s voting. Let''s keep supporting them!!!

Pass this around to others so they know they have and are supported by the public!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[hjedtyj]

Bush/Cheney called 800 Battalions to harass Remaining House Members to Vote for Bailout Tomorrow!!

Just heard this - hot off the press at 9:30pm, Thursday night!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Will Bush/Cheney start WW III over this? We know they have been itching to start a war to counter/cancel November''s elections so they can stay in power for the past year. Is this it?

The House members whom voted against are those who represent poor and low income areas throughout the country and areas that do not benefit from bailout. They are enough in numbers to make a difference in Monday''s voting. Let''s keep supporting them!!!

Pass this around to others so they know they have and are supported by the public!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[talk2chief]

It is time for Economic Darwinism.

Congress needs to decide if it represents the people or the dysfunctional corporate elites who deserve failure. Forget the failing operations that currently affect 401K''s, other well managed banks and financial institutions will lead, forget the lobby dollars and do the right thing and reject the bailout bill. Send a clear message to the top 1% of Americans, %u201CIf you fail, the taxpayer will no longer bail you out.%u201D

[donevis-2009]

Arm Twisting, Appeal? I didn''t know these words went with each other. Are they going to send in "Tiny and Knucks"

[wl7bzh]

Who can afford groceries... or even find much ammo anymore? They have us right where they want us.


Posted by sincityq at 01:55 PM : Oct 02, 2008

Groceries? You are pessimistic. I was think along the lines of rabbits, squirrels. You know if you bait a rat trap with nuts you can catch a bunch of squirrels.

Sling shots & rocks worked great in the past for ammo-quit being so dammm pessimistic : )

[lochlan-2009]

Lobbyists say to representatives, "can we get $700 from the treasury?"
Representatives think about it and say "well, no, I don''t think so."
Lobbyists then say, "what if we take $120 more on top of that and give it to you?"
Representatives in the Senate say "That works. Sure." 74-25.

Treason!!!!!

[staplesla]

It isn''t too late. Let your voice be heard!

Call your Congress member at [phone], and send an email here at www.votenobailout.org.

Contact the media as well. Flood them with emails. The media will hopefully start reporting the sentiment and it could have a change.

email addresses:
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],
[e-mail],


http://www.cnn.com/feedback/cnntv

[edthelight]

To date, nearly 1 Trillion dollars on bailing out AIG, Fannie/Freddie, Bear Stearns, WAMU, and other Institutions. Did this improve in the economy? These bailout only accelerated the economic downturn. Now Congress wants to fix the economy by throwing a $850 billion SELLOUT BILL at the problem, but it will only accelerate the CRASH and compound the SEVERITY of the MELTDOWN.
And to claim it will reduce taxes. I guess in a way it will because if you have no job or home you can%u2019t pay taxes. THANKS FOR THE MEMORIES CONGRESS AND THE CHENEY/BUSH ADMINISTRATION. This SELLOUT BILL is causing the dead to turn in their graves. Just remember November is your chance to bend over the Idiots that voted for the Bill. Who knows the dead may rise and vote in November. VOTE IN NOVEMBER.

[oahumannings]

Worse decision being made by a Senate in US Senate history! They ALL need to be dumped. What cowardly, and self serving *** of the Wall Street barons. God help our Nation.

[wl7bzh]

Look on the bright side. The delay in the market & economy crash will give us more time to stock up on food and ammunition.

[observantx]

Ya see, I,er, promised my base, y''know, the guys with the money fer my campaigns, that I''d, uh, make sure they didn%u2019t hafta pay fer their, uh, unfortunate choices ''cause that''s not the %u2019Merican way. Y''see, those who aren''t fer keepin'' my base happy with the big tax cuts they like an'' the special treatment they get that let''s them make big piles a money is votin'' against their intrests. Y''see, if they don''t get really, really, really rich, even though they maybe, uh, made some, er, I mean, made the unfortunate choices I mentioned before, won''t have enough to trickle down all over the rest of you folks.

So let yer Congressman vote fer the bailou.., I mean rescue plan. And get ready to be trickled on by everyone of my supporters.

And God bless %u2018Merica

[tibu987]

There are NO pills the public can swallow, there are only pills that the public MUST Swallow.

Once again, the public will pay for the avarice, mismanagement and incompetence (Senate,Congress included) of others.

And so it goes.

[tibu987]

I oppose the bailout in any form.

Let the chips fall where they may.
A recession or depression will allow the country to regain its position with time and in better shape.
Allow nominal mortgage payments until it gets sorted out.

Many Wall Street and mortgage companies made hundreds of millions of dollars in their usurious positions and took obscene salaries and bonuses, some in the hundreds of millions of dollars.

I do not want to see them rewarded for their avarice and mismanagement, or Congress for their incompetence.

Let''s keep in mind that had the lawmakers, i.e., Congress, been doing their job this bailout would never have happened.
Now, they want to be heralded as our saviors, b-lls-it.

Can there be yet more disasters and disgraces that the Bush cabal can give us?

Yes, things could get even worse. One way would be to vote for McCain/Palin and guarantee four more years of the same.

Almost makes one forget about the messes in Iraq, Afghanistan, Iran, and Pakistant doesn''t it?
Almost.

The bailout is like rewarding the fox for killing the chickens and many of the foxes are in Congress and the Senate.

Do you really want to reward the very people who caused this disaster by bailing them out?

This is one of the biggest insults ever to be laid on the average American taxpayer who, in reality had nothing to do with causing it. They went for the carrot because it was offered them by leeches who stood to make much more money by doing so.

[goosfraba2]

In reference to the post by habu99 at 11:38 AM : Oct 02, 2008

I strongly concur. Let the streets flow red with a French-styled revolution against the wealthy, the corporate execs (past and present), the lobbyists (past and present), the politicians (past and present), and all members of Wall Street. We ain''t gonna take it no more!!!

[goosfraba2]

In reference to the post by habu99 at 11:38 AM : Oct 02, 2008

I strongly concur. Let the streets flow red with a French-styled revolution against the wealthy, the corporate execs (past and present), the lobbyists (past and present), and the politicians (past and present). We ain''t gonna take it no more!!!

[docpeter1953]

How stupid do they think we are ?

Posted by beehive21 at 11:19 AM : Oct 02, 2008

___________________

VERY!