February 07, 2008
Senate Blocks Stimulus Bill
The Senate blocked a Finance Committee economic stimulus package, 58-41, Wednesday, just shy of the 60-vote margin needed for approval.
The vote was actually closer, as Senate Majority Leader Harry Reid, D-Nev., switched to a "no" in a procedural tactic that enables him to revisit the measure.
For now, the chamber is left with the House-passed stimulus bill, which would provide rebate checks and business tax breaks to the tune of $146 billion this year.
The House bill does not make seniors whose main source of income is Social Security eligible for rebates, nor veterans living off disability benefits. It also excludes unemployment insurance and would not allow companies to write off losses over a longer period to recoup taxes paid during profitable years -- of particular benefit to struggling homebuilders.
Those provisions are included in the Finance bill, which would cost $158 billion this year, but are in limbo.
"It is incredible that not even nine Republicans would join us to strengthen our weakening economy by helping those who need it most," Reid said. "There was a chance on the table to help low-income seniors and disabled veterans and Americans looking for work, and the Senate frankly blew it tonight," said Senate Finance Chairman Max Baucus, D-Mont.
There remains broad support for language adding seniors and veterans, as well as veterans' widows, to those eligible for tax rebates. The House bill would provide $600 checks to single filers, $1,200 for couples filing jointly and $300 per child. Rebates would be phased down for those making over $75,000 a year, or $150,000 per household.
Minority Leader Mitch McConnell, R-Ky., and Sen. Ted Stevens, R-Alaska, have offered an amendment to add $7 billion this year to include low-income seniors and others not covered under the House bill, as well as include language ensuring illegal immigrants would not get rebates.
"The goal here is not so much to claim credit as it is to astonish the American people and do something on a bipartisan basis and do it quickly," McConnell said, joking that he would change the amendment's sponsorship to "Reid-Obama-Clinton" if that would help get it passed.
Reid had threatened that yesterday's vote on the Finance package would be Republicans' one chance to vote for seniors and veterans.
Senate aides said they thought Reid would relent and allow a vote on the slimmed-down amendment, but at presstime no decision had been made.
"We're disappointed by tonight's vote and we expect the Senate to fix this," said David Sloane of the AARP.
Aides in both chambers said the House could swiftly approve the changes next week and get it to President Bush's desk. The Senate vote was nonetheless a cliffhanger.
Crossing the aisle to support the Baucus measure were the three Finance Committee Republicans who supported the bill in committee last week: Finance ranking member Charles Grassley of Iowa, Olympia Snowe of Maine, and Gordon Smith of Oregon. Joining them were Arlen Specter of Pennsylvania; Norm Coleman of Minnesota; Elizabeth Dole of North Carolina; Susan Collins of Maine; and Pete Domenici of New Mexico.
Domenici had not said how he would vote until debate was under way.
"I have reviewed various proposals carefully. Clearly the House-passed package is simply unacceptable. I would predict the House would not pass that bill again now that its flaws have been revealed," he said.
It was not enough, as Republicans did not even need presidential candidate Sen. John McCain, R-Ariz., who did not return for the vote.
Democratic candidates Sens. Hillary Rodham Clinton of New York and Barack Obama of Illinois were present, to great fanfare, and voted for the Finance bill.
Domenici said items such as $5.6 billion in renewable energy tax breaks helped to gain his support.
The prime mover behind the energy provisions, Sen. Maria Cantwell, D-Wash., could not hide her nerves during the vote and expressed disappointment when it was over.
"Today, the Senate missed an opportunity to invest billions of dollars in our nation's economy, and create thousands of jobs over the next 12 months," Cantwell said.
Specter and Sen. John Sununu of New Hampshire were two Republicans whose positions were being watched closely. Both had said they were undecided in recent days, although Specter voted 'yes' because of provisions such as the extension of unemployment insurance benefits.
Reid added $1 billion in low-income heating assistance to the underlying package, key to cold-weather states like New Hampshire. Sununu, who faces a tough re-election fight, was not swayed.
"Everyone knows that I have been steadfast in my support for the Low Income Home Energy Assistance Program. That's why I'm offended that LIHEAP funds were slipped into the bill at the last minute without a vote simply to buy more support," Sununu said in a statement. "Now, let's get serious, get back to work, and get a package passed."
-Peter Cohn, CongressDaily, with Ben Schneider contributing
