WASHINGTON, Oct. 13, 2008
Dueling Stimulus Plans On Capitol Hill
After Bailing Out Wall Street, Members Of Congress Push Economic Relief For Main Street
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House Speaker Nancy Pelosi, center, with Democratic leaders and economic experts, speaks during a news conference following an economic forum, on Oct. 13, 2008, in Washington. (AP PHOTO)
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The Early Show Economy In Crisis Confused about what's happening with the economy? You're not alone. Send us your questions for our experts to answer.
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Democrats scheduled hearings to consider a postelection stimulus package that could cost as much as $150 billion. Republicans, spooked by an issue that has damaged their presidential nominee John McCain as well as GOP House and Senate candidates, searched for traction in the debate, calling for more tax cuts and energy exploration to stabilize the economy.
Leaders of both parties appeared eager to pivot, three weeks from Election Day, from backing a $700 billion bailout for Wall Street firms, to advocating more economic aid for their constituents.
"We're at a time where we have to tighten our belt, take ourselves into survival mode," said House Speaker Nancy Pelosi, D-Calif., after a meeting with economic experts at the Capitol. "We plan to go forward expeditiously, but not hastily" after being "steamrolled" on the financial industry rescue.
Pelosi would not put a pricetag on the package, but she said it might have to be larger than a $61 billion bill that passed the House mostly along partisan lines last month but died in the Senate. She has said a plan costing $150 billion is needed.
Extending jobless benefits and spending federal money on infrastructure projects like roads and bridges, as well as sending food aid to the poor and money to states to pay their Medicaid bills, are "priorities," Pelosi said. She did not rule out sending another round of tax rebates to follow the $600-$1,200 checks most individuals and couples received through the stimulus package enacted in February.
In a letter to Pelosi, House Republican leader John Boehner of Ohio said he agreed "wholeheartedly that Congress should take additional measures to get our economy back on track, and we should not wait until January."
But Boehner said none of the Democrats' ideas would stabilize the economy, and called their approach "irresponsible." Republicans are instead calling for corporate and investment tax cuts, more energy exploration, and federally insuring 100 percent of bank transaction accounts, among other measures.
GOP leaders, who were initially planning to insist that Congress return before Nov. 4 to pass an aid package, scrapped that idea just before releasing their proposal. Kevin Smith, Boehner's spokesman, said the switch was made "to put a premium on the merits of the policy proposals we're putting forth."
The swift about-face highlighted the tricky politics Republicans are facing, as they work to show a sense of urgency on addressing economic woes that are largely associated with their own party's president.
It also pointed up a stark difference between congressional Democrats, who are coordinating with presidential nominee Barack Obama on the stimulus measure, and Republicans, who were pushing their own proposal even though McCain on Monday shelved plans to call for new tax cuts or other measures to bolster the economy.
Democrats, increasingly confident of capturing the White House and increasing their congressional majorities, could call Congress into a lame-duck session shortly after the elections to start work on a stimulus bill. That would allow the package to become law much sooner than it would if it had to wait the customary two months - sometimes longer - that it takes for a new Congress and new president to begin turning out legislation.
On the other hand, a postelection session might limit Democrats' ability to get what they want in a stimulus measure, since they would have to negotiate with President Bush, who's in office until January, and Senate Republicans, who could block it.
"Losing an election rarely has a good effect on one's personality. It doesn't generally make a person more agreeable," said Rep. Barney Frank, D-Mass., the Financial Services Committee chairman.
And Democrats signaled that their appetite for another bipartisan negotiation with the Bush administration and Republicans in Congress is waning.
Pelosi noted that bailout measure was a Republican idea - proposed by the Bush administration - pushed through with mostly Democratic votes.
"If it's going to happen that way, we might as well write the bill ourselves and do the right thing for the American people," she said.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Add a Comment See all 22 Comments
- NO MORE TAX CUTS PERIOD.
What is wrong witht the GOP this is the same garbage that got us into this mess.
God they get dumber every day.
I repeat this warning to the hardliners if you do not moderate we the swing voters will moderate you. If you continue on this venture we will break you.
We must pay our debt borrow and spenders.
YES TAX CUTS ARE NEEDED!, But you place restrictions. You must bring youroverseas jobs back to the US. Most companies that can leave due to the high taxes the US gov''t charges. Lower taxes on that condition and keep taxes the same on our middle and lower class. More jobs means more taxes. The Dem''s do not understand the principle, tax the rich and they leave or move the money out of reach. I don''t blame them. - Reply to this comment
- The Republican plan is far superior and doesn''''t amount to a free cheese giveaway by a bunch of socialists. The Republican plan puts the money in the hands of the wealthy where it can be efficiently trickled down to the unclean masses.
Posted by paidGOPshill at 09:50 AM : Oct 14, 2008
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DANG GOP! You never fail to provide me with humor. - Reply to this comment
- Gee! Obama will get to preside over the demise of America. The Repubs want him to win the election because nothing can now stop the coming train wreck. The Repubs will rise from the ashes in 4 yrs., or maybe a viable third party will be born.
- Reply to this comment
- Will Bill Ayers become President Obama''s Director of Homeland Security? How about Barney Frank as Sec. of the Treasury and Senator Dodd in charge of the mortgage bailout? Sounds good to me.
- Reply to this comment
- The blood shed by men and women who fought for our country over the past two and a quarter centuries to keep all of us free was wasted on you, and for that you should be ashamed. They sacrificed their very lives to keep us free, but you would sell all of it and all of us out for socialized medicine and your preference for nationalized industries. John43218
bunch of BS grap above....The Irag war is Bush''s personal war and has nothing to do with 911.....the socialized medicine you are so afraid of can actually be a good thing for the millions of americans who need it and who swamp the local emergency rooms anyway.....socialized medicine works in countries like the UK, Canada and the Czech Republic.......no system is perfect but for a lot less than we are paying for a fool''s war we could provide all our citizens with health care...... - Reply to this comment
- 1st year psych students could have a heyday with nancy
Posted by jamesm12341 at 08:50 AM : Oct 14, 2008
Physiatrists would have work for a lift time with you. - Reply to this comment
- NO MORE TAX CUTS PERIOD.
What is wrong witht the GOP this is the same garbage that got us into this mess.
God they get dumber every day.
I repeat this warning to the hardliners if you do not moderate we the swing voters will moderate you. If you continue on this venture we will break you.
We must pay our debt borrow and spenders. - Reply to this comment
- Why do so many people who hate America endorse this man?
Posted by john43218
Just read their post and you can figure it out. - Reply to this comment
- urine trouble.
Posted by ibsteve2u
We have different views, but still that was pretty punny! You might have your prostrate checked though. ;) - Reply to this comment
A vote for Barack Obama is a vote for the demise of what this country has stood for since the Declaration of Independence was signed over 232 years ago.
Posted by john43218
AMEN JOHN!!!!- Reply to this comment
- Republicans are instead calling for corporate and investment tax cuts,
Gee, what a surprise. It seems the Republicans can''t or won''t get a grip on reality. Oh wait, that is the only reality the Republicans have. "Corporate and investment tax cuts......." After all it has worked so well.... - Reply to this comment
- Barack Obama has received support and endorsements from Mu%u2019ammar Al-Qadhafi, Daniel Ortega, Fidel Castro, Kim Jong-Il, and Hamas terrorist organization.
Why do so many people who hate America endorse this man?
If you%u2019re not disturbed by the things you read about these people and organizations, and their connections to Barack Obama, you are lying to yourself and to your fellow citizens if you think you love this country.
The blood shed by men and women who fought for our country over the past two and a quarter centuries to keep all of us free was wasted on you, and for that you should be ashamed. They sacrificed their very lives to keep us free, but you would sell all of it and all of us out for socialized medicine and your preference for nationalized industries.
That%u2019s not freedom, and the people who are advocating this stuff DO NOT LOVE AMERICA.
Maybe there are some who are timid about questioning your patriotism and that of Barack Obama%u2019s, but not me. This needs to be said; so there, I%u2019ve said it.
A vote for Barack Obama is a vote for the demise of what this country has stood for since the Declaration of Independence was signed over 232 years ago. - Reply to this comment
- Because when you compare your expenses to your income in a Republican economy, you know that urine trouble.
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Posted by ibsteve2u at 05:33 AM : Oct 14, 2008
Now that would be funny, if it weren''t so true!!
LOL - Reply to this comment
- Why does "trickle-down" feel more like being PEED ON?
Posted by homespunlady at 01:15 AM : Oct 14, 2008
Because when you compare your expenses to your income in a Republican economy, you know that urine trouble. - Reply to this comment
- It is strange to me that Congresss can pass a bill that gives wealthy banks, Wall Street investment firms $700 billion and cannot pass witout quibbling, a reasonable package to each individual tax payer. Why is it so hard for Congress to help us Main street people or just plain John and Jane Doe? The help needs to be done on or through the income tax form because paying people that do not pay taxes is charity and should be done by charity organizations.
- Reply to this comment
- I don''t think the American people can afford this [DUELING SHI!]
- Reply to this comment
Frankly, it is becoming OBVIOUS that McCain spent TOO MANY YEARS as a POW. His psyche is damaged. He is unpredictable. He''s unstable and angry. He explodes under pressure. He is VERY dangerous for America.
OF COURSE all of those years as a POW left him emotionally damaged. To claim anything else is not understand what years of unending brutality will do to your stability- the stability of even the strongest of us..
I''m sorry McCain is so deeply damaged from his years as POW. I sure as hell am not so sympathetic as to put McCain''s finger ANYWHERE NEAR THE ECONOMY or THE RED BUTTON.- Reply to this comment
- The movie called "W" comes out Friday. Just what we need to REMIND us of all the "interesting" things King George has DONE TO this nation...
Next up:
SOCIALISM for the WEALTHY
SERFDOM for the POOR
EXTINCTION for the MIDDLE CLASS
Why does "trickle-down" feel more like being PEED ON? - Reply to this comment
- "Republicans are instead calling for corporate and investment tax cuts, more energy exploration, and federally insuring 100 percent of bank transaction accounts, among other measures." That''s it! Pure genius! Let''s give more to the very people who screwed us. We''ll give them so much, there won''t be anything left to take. GREAT STRATEGY.
- Reply to this comment
- WogerWabbit,
The Goverment just don''t give money out unless they ripped you off for WAY more!
Like a Stock crash done on purpose, and 700 Billion to the rich!
Repulicans and Democrats are pertners in Crime.
Our Goverment has been hijacked by 2 parties.
(A Double headed Nichol will always come up heads)
How do they fool America with the 2 Parties of rich, power hungry crooks!
Even a re-**** could figure out how they leverage America against itself with Dems vs. Reps.
One side will ALWAYS WIN! - Reply to this comment
