WASHINGTON, Feb. 4, 2009
Obama Warns Critics Of "Catastrophe"
Urges Quick Passage Of Economic Stimulus Package, Now Reaching $900 Billion
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President Barack Obama listens to Treasury Secretary Timothy Geithner as he spoke about executive compensation, Wednesday, Feb. 4, 2009, in the Grand Foyer of the White House in Washington. (AP Photo/Charles Dharapak)
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Play CBS Video Video Pres. Obama On Daschle Flop During his second week in the Oval Office, Pres. Barack Obama speaks with Katie Couric about his economic stimulus package and the Tom Daschle tax debacle.
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Video GOP Still Rejects Stimulus Despite his best efforts, President Obama has been unable to convince congressional Republicans to endorse his massive multi-billion dollar stimulus package. Sharyl Attkisson reports from Washington.
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Video Notebook: Economic Stimulus As the latest economic stimulus package continues to grow by billions of dollars, Michelle Miller notes that such spending can seem almost like a game of Monopoly at times.
"A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future," the president said Wednesday as he unveiled plans to limit compensation to $500,000 for executives whose companies receive "extraordinary" assistance from the government.
Mr. Obama rejected several criticisms of the plan: that tax cuts alone will solve the problem, or that longer-term goals such as energy independence and health care reform are not also critical to address at the same time.
Mr. Obama subtly referenced his win in November while arguing that recalcitrant lawmakers need to get behind his approach.
"Let’s not make the perfect the enemy of the essential," the president said.
The cost of Mr. Obama's economic recovery plan is now above $900 billion after the Senate added money for medical research and tax breaks for car purchases.
It could go higher Wednesday if a tax break for homebuyers is made more generous, even as centrists in both parties promise to clear away spending items that won't jump-start the economy right away.
According to the Washington Post, Senate Democrats lack the 60 votes needed to both pass the plan and avoid a Republican filibuster.
In an interview on CNN, Mr. Obama signaled a willingness to drop items that "may not really stimulate the economy right now." He also signaled he'll try to remove "buy American" provisions in the legislation to avoid a possible trade war.
The actual details of the stimulus package often get lost in all the coverage of the back-and-forth between lawmakers. For a glance at what's actually being planned, see CBSNews.com's Political Hotsheet, where we've published the Associated Press' breakdown of the highlights of what's in the package.
In a victory for auto manufacturers and dealers, Sen. Barbara Mikulski, D-Md., won a 71-26 vote to allow most car buyers to claim an income tax deduction for sales taxes paid on new autos and interest payments on car loans. The break would cost $11 billion over the coming decade but could mean savings of $1,500 on a $25,000 car.
"Just as we need to get the housing market going, we need to get auto sales going," said Sen. Debbie Stabenow, D-Mich.
Wednesday's session could produce even more generous savings for homebuyers.
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Sen. Johnny Isakson, R-Ga., is pressing for a tax credit of up to $15,000 for everyone who buys a home this year, at a cost of $18.5 billion. The pending measure would award a $7,500 tax credit only to first-time homebuyers.
A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future.
President Barack ObamaAt the same time, centrist senators, including Ben Nelson, D-Neb., and Susan Collins, R-Maine, are seeking to cut tens of billions of dollars from the legislation. They're operating with the blessing of Democratic leaders, who hope a successful effort could attract some GOP votes for Mr. Obama's plan.
Democratic leaders conceded they may soon be obliged to cut billions of dollars from the measure. "It goes without saying if it's going to pass in the Senate, it has to be bipartisan," said Sen. Dick Durbin of Illinois, the second-ranking Democratic leader, adding that rank-and-file lawmakers in both parties want to reduce the cost of the bill.Click here for a comparison of the House and Senate versions of the package.
President Obama, speaking to CBS Evening News anchor Katie Couric Tuesday, acknowledged that some of the fat added to the stimulus package in the House would likely have to be trimmed.
"Many of the projects that people have pointed out as partisan pet projects are actually pretty good policy. They may just not belong in this bill," Mr. Obama said in the interview, which aired Tuesday night.
CBS News correspondent Sharyl Attkisson reports that more than half of Americans surveyed say Congress should make big changes to the stimulus package or reject it altogether, and Republicans have sensed a chink in the new president's armor. (Click here to read more.)
"I'm sure that Democrats, or at least the president, is embarrassed by some of this," said Sen. Jon Kyl, R-Ariz.
In a series of skirmishes Tuesday, the Senate turned back a proposal to add $25 billion for public works projects and voted to remove a $246 million tax break for movie producers. Both moves were engineered by Republicans who are critical of the bill's size and voice skepticism of its ability to create jobs.
But several hours later, GOP conservatives didn't contest approval of a $6.5 billion increase in research funding for the politically popular National Institutes of Health. That amendment, by Tom Harkin, D-Iowa, drove the price tag of Mr. Obama's plan just above $900 billion.
Democratic leaders have pledged to have the bill ready for Mr. Obama's signature by mid-month.
© MMIX, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
More From 100 Days: Economy
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- Of course, the Repugs do not want a stimulus bill that really helps little people. They want tax cuts that favor the rich and the corporations. We''''ve seen how well tax cuts work...the economy is in the tank, people are being laid off, and morale is low. Why would anyone think that tax cuts alone are going to do anything. McCain is against making us energy independent...says this won''''t create jobs. Yes, it will create jobs and help the country, too. The Republicans are beholden to the oil industry and they don''''t want to be energy independent. Also, they want Obama to fail. That is their goal and they don''''t care whether the country goes down with him...they want back in power!
Posted by sesanders1 at 08:01 PM : Feb 04, 2009,,,,,,,,,,,,,,,,,,is a 500 dollar tax break after they rewrite the tax tables really doing something for the citizens?....while the rich get much richer? all at the expense of the taxpayer?This stimulus will never benefit the people...never. - Reply to this comment
- Well, go for it then. Take on a military that has had a runaway budget for the last decade. See how well you fare against America''''''''s technical war machine....
Posted by marydpreachr at 08:05 PM : Feb 04, 2009................Do you really think that ALL the military forces would shoot their own people? I don''t,,,it boils down to knowing right from wrong,,,and many of them know ,,,the government is corrupt. - Reply to this comment
- I take it you''''ve never been on the trigger side of an American weapons system.....don''''t worry, they won''''t run out of bullets before they run out of targets....
Posted by marydpreachr at 08:26 PM : Feb 04, 2009.......................If that be the case so be it.....I will be the one defending AMERICA....and THAT is what matters. - Reply to this comment
- ................just wait the numbers will grow,,,,,,,,when tens of thousands lose jobs...daily...and like the foreclosures ...over 250,000 since Bush yelled we have a problem,,,,,,like all the 401 k''''s destroyed,,,,,,Billions of dollars wasted so far on the republican half of the lie,,,,,and billions more in the barrel on the democratic side of the lie......It is not a mater of IF...it is just a matter of when......"We the people" will fight and die for what we believe in and have worked hard to get...... what congress is doing IS CRIMINAL,,,,,,,And yes I would face whatever to stop ANYONE from DESTROYING AMERICA,,,,,,,,,
Posted by tincup356 at 08:22 PM
I take it you''ve never been on the trigger side of an American weapons system.....don''t worry, they won''t run out of bullets before they run out of targets.... - Reply to this comment
- Well, go for it then. Take on a military that has had a runaway budget for the last decade. See how well you fare against America''''s technical war machine....
Posted by marydpreachr at 08:05 PM : Feb 04, 2009................just wait the numbers will grow,,,,,,,,when tens of thousands lose jobs...daily...and like the foreclosures ...over 250,000 since Bush yelled we have a problem,,,,,,like all the 401 k''s destroyed,,,,,,Billions of dollars wasted so far on the republican half of the lie,,,,,and billions more in the barrel on the democratic side of the lie......It is not a mater of IF...it is just a matter of when......"We the people" will fight and die for what we believe in and have worked hard to get...... what congress is doing IS CRIMINAL,,,,,,,And yes I would face whatever to stop ANYONE from DESTROYING AMERICA,,,,,,,,, - Reply to this comment
- As an old sales person I can tell you that any time someone tries to hurry you into buying something it''s a bad deal for you and a good one for him. I don''t blame Obama for trying, though. He''s been so successful to date with all that snake oil...
Posted by creeper00 at 08:09 PM
You sound like the kind of fellow that would question the quality of the rope someone has thrown you while you are falling off a cliff... - Reply to this comment
- In baseball this would be referred to as a "quick pitch". It''s when the pitcher throws the ball before the batter has a chance to get set.
In baseball it''s illegal. In politics it''s just business as usual.
As an old sales person I can tell you that any time someone tries to hurry you into buying something it''s a bad deal for you and a good one for him. I don''t blame Obama for trying, though. He''s been so successful to date with all that snake oil... - Reply to this comment
- That kinda talk will get you a one way ticket to Leavenworth...
Posted by marydpreachr at 07:51 PM : Feb 04, 2009....................if this bill passes a lot of us will be imprisoned,,,,Thomas Jefferson warned us of THREATS from WITHIN,,,,,,when the government steals the treasury and gives it to who PAID them BRIBES in the form of LOBBY dollars...it is THEY who are committing TREASON.
Posted by tincup356 at 07:58 PM
Well, go for it then. Take on a military that has had a runaway budget for the last decade. See how well you fare against America''s technical war machine.... - Reply to this comment
- Of course, the Repugs do not want a stimulus bill that really helps little people. They want tax cuts that favor the rich and the corporations. We''ve seen how well tax cuts work...the economy is in the tank, people are being laid off, and morale is low. Why would anyone think that tax cuts alone are going to do anything. McCain is against making us energy independent...says this won''t create jobs. Yes, it will create jobs and help the country, too. The Republicans are beholden to the oil industry and they don''t want to be energy independent. Also, they want Obama to fail. That is their goal and they don''t care whether the country goes down with him...they want back in power!
- Reply to this comment
Let''s face reality millions of good hard working people both dems and reps are hurting. They live in the so called red states and blue states. Both parties are getting calls from governors, mayors, selectman etc. from both political persuasions
that cops, firemen, teachers, are being fired. Libraries, clinics, hospitals are closing. They need the help NOW not next election cycle. No bill that has past in congress was perfect. We are living in times that have not be seen in decades. Nobody can say what will work and what won''t. I guarantee in short order the reps will abandon Rush Limpdude and capitulate. Even the dem blue dogs will vote aye. The reps that have secured seats in the house and senate will still vote no to please the Rush dude though others that face a tough reelection will vote in the affirmative. This is not the time to be a partisan, this is time to be an American and vote for Americans.- Reply to this comment
That kinda talk will get you a one way ticket to Leavenworth...
Posted by marydpreachr at 07:51 PM : Feb 04, 2009....................if this bill passes a lot of us will be imprisoned,,,,Thomas Jefferson warned us of THREATS from WITHIN,,,,,,when the government steals the treasury and gives it to who PAID them BRIBES in the form of LOBBY dollars...it is THEY who are committing TREASON.- Reply to this comment
- The Only thing that will save our country is a revolution.
Posted by tincup356 at 07:48 PM
That kinda talk will get you a one way ticket to Leavenworth... - Reply to this comment
- The Only thing that will save our country is a revolution.
- Reply to this comment
- The President should pull his package from the Congress because of their childish bickering and numerous roadblocks. THEN, let all 535 cowards and egotists head for the hills to hide.
- Reply to this comment
- Is that why there''''s no oversight in any bailout?
Posted by marydpreachr at 07:33 PM : Feb 04, 2009................If you were stealing money and giving it to your buddies ...would you want anyone to trace it? Wake up people this is not a bailout...it is theft of treasury funds by FRAUD.It is no different than the president of the bank opening the vaults for his friends. and when completed the middle class will be destroyed ...FOREVER,,,,,WE cannot permit this to happen. - Reply to this comment
- actually, it''s moving pretty fast. The gov''t now owns the auto industry, financial industry and is jockeying to takeover the healthcare industry. It also wants to nationalize the oil industry, and dictate how much people make.
Posted by jgg000006 at 07:30 PM
Is that why there''s no oversight in any bailout?
Posted by marydpreachr
no, that''s because they''re stupid.
Posted by jgg000006 at 07:40 PM
If this is communism, shouldn''t there be government officials taking over the CEO positions? - Reply to this comment
- actually, it''''s moving pretty fast. The gov''''t now owns the auto industry, financial industry and is jockeying to takeover the healthcare industry. It also wants to nationalize the oil industry, and dictate how much people make.
Posted by jgg000006 at 07:30 PM
Is that why there''''s no oversight in any bailout?
Posted by marydpreachr
no, that''s because they''re stupid. - Reply to this comment
- actually, it''s moving pretty fast. The gov''t now owns the auto industry, financial industry and is jockeying to takeover the healthcare industry. It also wants to nationalize the oil industry, and dictate how much people make.
Posted by jgg000006 at 07:30 PM
Is that why there''s no oversight in any bailout? - Reply to this comment
- Hey, according to all the Barak bashers, we should be a communist country by now. What''''s taking so long?
Posted by marydpreachr
actually, it''s moving pretty fast. The gov''t now owns the auto industry, financial industry and is jockeying to takeover the healthcare industry. It also wants to nationalize the oil industry, and dictate how much people make. - Reply to this comment
- Hey, according to all the Barak bashers, we should be a communist country by now. What''s taking so long?
- Reply to this comment
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