$146 Billion Stimulus Plan Passes House
Wednesday, January 30, 2008
The House overwhelmingly approved a $146 billion shot in the arm for the nation's ailing economy yesterday, sending a stimulus package to the Senate with a bipartisan appeal not to slow down the bill with significant changes.
The 385 to 35 vote marked a rare moment of bipartisan comity in the House, as Democrats and Republicans took to the floor to praise the cooperation shown by their leaders and the Bush administration in forging a package of tax rebates and business investment incentives.
The bill would pump $146 billion into the economy this year and $15 billion next year, before recouping some of that money as businesses begin paying taxes on the investments they are expected to make under the plan, according to the Joint Tax Committee. The package would cost $117 billion over 10 years.
But behind that amity was growing concern that the Senate would make changes that, at best, would force the package into House-Senate negotiations and, at worst, would court a presidential veto.
"My concern is that we need to get this bill out of the Senate and on my desk so the checks can get in the hands of our consumers and our businesses can be assured of the incentive necessary to make investments," President Bush told reporters in the Oval Office.
House Speaker Nancy Pelosi (D-Calif.), House Minority Leader John A. Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.) increased pressure on senators to accept the bill approved by the House and to send it to Bush by week's end.
"If we heap too much on top of the package, it will then take us deeply into debt," Pelosi said. "I think it's a good day for us here. Let's hope the Senate takes our lead from us."
But senators from both parties said they want to alter the measure -- first today, when the Senate Finance Committee takes up its own stimulus proposals, then tonight, when the issue will reach the Senate floor.
"I understand [McConnell's] point that we don't want to somehow derail the package, but on the other hand, some of the changes the Finance Committee is looking at would make the House package better," said Sen. Susan Collins (R-Maine).
Under the House stimulus plan, most workers would receive $600 from the government -- the sum would be $1,200 for couples, plus $300 per child. Eligibility for the full payment would be capped at $75,000 in adjusted gross income for individuals and $150,000 for couples. Workers with at least $3,000 in income last year who earned too little to pay taxes would receive $300, plus $300 per child. Businesses would receive $45 billion in tax incentives to invest in new plants and equipment.
The bill also includes measures to allow the Federal Housing Administration and the federally backed Fannie Mae and Freddie Mac mortgage consolidators to insure larger mortgages.
The Senate appears deeply divided over whether to accept the House plan or to press forward with its own. The Finance Committee package would reduce most of the tax rebates to $500 per person but would offer them to virtually everyone, including low-income seniors and the affluent. The Senate version also includes a 13-week extension of unemployment benefits, another provision dropped from the House-White House compromise.