Senate GOP To Unveil Housing Alternative
Senate Republicans later this afternoon plan to unveil an economic package that includes a variety of housing initiatives, tax cuts, tort reform proposals and other conservative fiscal priorities.
Some of the proposals may be nonstarters with Democrats pushing a sweeping housing foreclosure bill. But the effort is the first major step in a new initiative by Senate Republicans to show what they stand for after a year of being accused of doing little but blocking Democratic proposals in the Senate.
Among the proposals being floated by Republican leaders will be $10 billion for refinancing subprime loans, large tax credits for purchasing distressed mortgages, making permanent the 2001 Bush tax cuts, and caps on punitive damages for small businesses sued by out of state trial lawyers. Senate aides caution that the details are still being worked out, so the proposals could change before the amendments are officially offered.
Some of these ideas _ the tax cuts and the tort reform _ are old Republican standbys aimed at pleasing the conservative base. But some of the housing ideas, such as providing billions to help refinance subprime mortgage loans and $15,000 tax credits for taking on distressed mortgages, are aimed at easing the mortgage crisis without resorting to bailouts for consumers who signed on to bad loans.
Republicans are hoping to offer this package of ideas in the form of amendments to the Senate housing bill, but it's not clear if Democrats will let the GOP have a vote on all the proposals. The Senate Democratic legislation contains a controversial provision that would allow bankruptcy judges to unilaterally restructure mortgages for certain homeowners in foreclosure. That provision is opposed by bankers, and compromise language has been rejected.
Democrats say they'll listen to Republican proposals, but won't guarantee votes on any of the ideas.
"We are more than happy to take a look at this amendment and any other amendment they have and work out a way forward to completing this important legislation," said Jim Manley, spokesman for Senate Majority Leader Harry Reid (D-Nev.) "Before this is over, they will have an opportunity to demonstrate whether they want to work in good faith or merely want to cover their obstructionist tracks."