Senate poised to abandon long-stalled economic stimulus package

Posted 10:40AM on Wednesday 6th February 2002 ( 22 years ago )

WASHINGTON - Some lawmakers hope to give the nation's unemployed workers extended jobless benefits even if the Senate appears ready to give up on a broader economic stimulus package. Senate Majority Leader Tom Daschle said he would "continue to look for ways" to win approval of a simple 13-week extension of unemployment aid if, as expected, competing Republican and Democratic stimulus plans fail in votes planned Wednesday. Frustrated by the failure of President Bush's package, White House spokesman Ari Fleischer said senators passing unemployment relief "is the least they should do." An $89 billion House-passed package supported by Bush and a leaner $69 billion alternative pushed by Daschle both faced a 60-vote threshold to overcome Senate procedural hurdles. Neither side expected their plan to prevail, and Daschle said the Senate would move to other business. "I've made every effort I can think of to find the common ground," said Daschle, D-S.D. Republicans swiftly condemned the move. Minority Leader Trent Lott, R-Miss., said the failure to act is "sending a very dangerous and reckless message to an uncertain economy." Bush, returning Tuesday from a trip to Pittsburgh, said he, too, was disappointed. The president has been pushing since October for an economic stimulus plan that blended individual and business tax cuts with aid to the jobless to reverse a recession that got worse after the Sept. 11 terror attacks. "Our economy, while there's some good news, needs more stimulus," Bush said upon arriving at the White House. "Workers need help, and we need to stimulate the economy." Republicans and Democrats were unable to compromise on the level of tax relief in the package, particularly an acceleration of individual income tax cuts, and how best to deliver aid to the unemployed. The GOP-led House passed two different measures last year, but neither could clear the 60-vote threshold necessary to pass a Senate divided between 50 Democrats, 49 Republicans and an independent. Daschle, who was labeled an "obstructionist" by Republicans because of the stimulus deadlock, suggested in January that the Senate pass a bare-bones stimulus bill composed of the most popular items. Republicans derided the Democratic bill as virtually stimulus-free and argued for deeper tax cuts to spur growth. "If in fact the Senate, under its current leadership, can do nothing good, we are better off with them doing nothing at all," said House Majority Leader Dick Armey, R-Texas. Democrats, however, said Republicans were trying to showcase their tax-cut priorities for voters in an election year, knowing they would not become law. They said some proposals, such as ensuring the estate tax repeal stays in place in the next decade, would have virtually no impact on the recession. "It was tied in with their tax breaks that are not justified," said Rep. Gerald Kleczka, D-Wis. Some Republicans had begun to question whether money earmarked for the stimulus bill might not be better used to balance the federal government's budget. A group of 70 House conservatives is pushing for that goal if no stimulus bill is passed. "If we can't pass a solid economic stimulus bill, we should balance the budget this year," said Rep. Pat Toomey, R-Pa. Other lawmakers expressed frustration that election-year politics already were dominating the congressional agenda. Voters will think "we're too busy down here trying to figure out who's going to control the U.S. Senate" to address crucial issues, said Sen. George Voinovich, R-Ohio. The Bush administration supports a package that would provide $89 billion in stimulus in 2002 and $73 billion in 2003. It would accelerate income tax cuts now set to take effect in the future and provide a new round of rebate checks of up to $600 aimed at lower-income Americans. It would extend unemployment benefits by 13 weeks, help laid-off workers pay for health insurance and give corporations and small businesses more generous tax breaks for new investment. That bill did attract the support of three Senate Democrats, and Republicans hope to demonstrate Wednesday that it would pass without the procedural 60-vote obstacle. Daschle's bill, which would provide $69 billion in stimulus in 2002, includes the unemployment benefits extension, more limited business tax breaks, tax rebate checks and an increase in Medicaid money to help states balance their budgets.

http://accesswdun.com/article/2002/2/199132